Management Rights

Management Rights and Management Rights Finance

Management Rights are a set of agreements that can give the owner the right to manage a complex (caretaking) and to also let properties within the complex (letting).

When you purchase the management rights to a building, this usually comes with a Unit in the complex, known as the managers unit and an office/reception area especially in holiday complexes. In some buildings the office is owned by the Body Corporate and the manager is allowed to operate the business from here under exclusive use.

The caretaking of the complex is paid to manager of the complex as a salary and is often referred to as the Body Corporate Salary. This salary is paid by the Body Corporate for the upkeep of the common areas of the property. These can include but not limited to swimming pools, BBQ areas, Gyms, lawns, general gardening and foyers, paths and stairwells for walk up complexes.

The letting agreements allow for the building manager to offer units for rent within the complex from an onsite position and these can be short term (holiday), long term (permanent), student (term) and corporate letting (weekends, overnights etc.) Some complexes can have a mix of holiday and permanent available apartments.

The term of these agreements are different for each state and will also affect borrowing terms as the specialist funders of these businesses will usually limit the term length of their loans to the agreement term.

For example in QLD:

Accommodation Module – Max term of 25 years

Standard Module – Maximum term 10 years

NSW Regulation – Maximum term of 10 years (since 2003) earlier built complexes maybe longer

With over 20 years experience in the industry, Director Nick Smith is the best person to guide you through the lending process.