Management Rights Types

Management Rights buildings have a number of different ‘types’ and a complex can combine these types or be solely reliant on one. The type of business is usually down to two types either permanent or holiday or a mixture of the two. Lets have a look at the different types available:

Holiday

These complexes involve the letting to tourists on usually a very short term basis in a similar way to a hotel. The returns from these types of complexes are generally the highest, due to a number of reasons. Letting income is generally higher on a holiday building and their are also other income streams such as cleaning, linen hire and commissions from ticket sales. Office hours are usually to suit the guests that are staying at the complex and would normally include some weekend work.

Being able to market the complex is very important as having high occupancy at good rates is going to generate the most income. The onsite amenities such as pool, BBQ, tennis courts etc and location to the beach can also have a huge impact.

With many holiday letting operations there are peak and off-peak moments that can affect the business for cash flow. Good management and good marketing skills will be needed to ensure that the business thrives.

A Body Corporate Salary will also be available for the caretaking of the common areas and the general upkeep of the complex, including the pool if there is one.

Permanent 

Permanent complexes are long stay apartments, units, townhouses with usually a minimum rental term of 3 months and more often 6 – 12 months.

Office hours for permanent letting are usually less onerous than holiday letting and allow for a little more of a ‘lifestyle’, depending of course on the number of Units within the complex.

The income stream for a permanent complex is a little less complex and most income will be generated by letting commissions and repairs and maintenance to units.

A Body Corporate Salary will also be available for the caretaking of the common areas and ensuring the upkeep of the complex including upholding the by-laws of the complex.

Student

Usually within distance of nearby learning, such as a University or school, this type of complex is very similar to a permanent complex but usually on a ‘semester basis’.

These complexes are usually designed with students in mind and can have more than one lease or sublease per property. For example a 3-bedroom property can be leased to 3 different individuals all on different leases.

Some of these type of complexes can have a ‘student bar’ within the complex so a liquor license will need to be held.

Again a Body Corporate Salary will be provided for the caretaking of the building.

Corporate

Generally located close to a CBD and operate not too dissimilar to a holiday building in that they offer short term stays, but with businesses in mind. For example airlines may use these kind of buildings for their cabin crew to stay after a long haul flight.

Body Corporate Salary will be provided for the caretaking of the building.