Management Rights businesses are uniquely Australian, in that they began on the Gold Coast, as a solution for on-site management services, for high rise holiday let apartment buildings.
The concept has spread to NSW, Victoria and Western Australia and there are many variations of the model.
Here are some of the main examples of Management Rights Businesses:
- Permanent Complexes
This is where an on-site manager has a pool of properties under their management, on behalf of landlords/investors.
The manager will rent those units, for 6 or 12 month periods and manage the properties and collect a percentage of the rent per month.
- Holiday Complexes
This model is similar to a permanent complex however, the term of stay varies and the units are often let out on a weekly basis. Some larger complexes choose to operate closer to the hotel model, with 24 hour reception, to allow for one night stays.
The remuneration to the Manager, is higher, with additional charges added for linen, cleaning and other sundries.
- Corporate Complexes
These complexes are normally located in the CBD and vary in size, from small boutique to hotel style and allow for one night stays or longer.
A percentage of the collected tariff is charged, along with linen, cleaning and other sundry charges.
- Student Accomodation
These complexes are normally purpose built and individual apartments can have 3 or 4 bedrooms, which are let separately to students.
Tenancy Agreements are generally under a Rooming Accomodation Agreement and most tenancy contracts, are either 21 or 50 weeks, allowing for only minimal vacancy.
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