Management Rights were created in the 1970’s by Queensland Developers introducing the concept of a Resident Unit Manager to conduct the on-site property management for the Body Corporate of unit owners and the letting agency service for those owners wishing to let their units.

The concept proved very popular and has mushroomed until today, there are over 1,000 residential and holiday building complexes in Queensland.

The Management Rights industry is protected by Queensland Government Legislation:- Building unit & Group Title Act 1980-1992, and replaced by Body Corporate and Community Management Act 1997. The legislation covers all aspects of the industry in detail and is continually evolving for the benefit of all concerned. There are currently amendments before Parliament aimed at further fine tuning.

The purchase of a Management Rights Business, firstly includes a residence from which you carry out your duties ie: you are working from home. The business is a contract with the Body Corporate to carry out the caretaking duties of the complex. For this you are paid an annual salary. In conjunction with this Caretaking Agreement you are normally granted a Letting Agreement which appoints you as the exclusive on-site Real Estate Agent to let investment units within the property. In operating your business there are further sources of income available to you, such as, maintenance of investment properties, commissions on insurance premiums, and in the case of holiday complexes income from sale of tours, cleaning, profit from linen hire, car rental hire, T.V., PABX and other rentals etc.

Management Rights operator is responsible the collection of monies on behalf of property owners and preparation of letting agreements. It is a State Government requirement that a restricted letting agents licence be obtained. This licence may be obtained by attending a study course (usually 10 days) or via correspondence from either Real Estate Institute of Queensland or Queensland TAFE College.

Under the terms of your Caretaking Contract and in consideration of the payment of your salary you are required to maintain all common areas such as, lawns, gardens, pools, spa, and saunas. It is expected that you maintain the property to a high standard. You are not required to carry out any work which will require the services of a qualified tradesman. However you are required to supervise any work performed by a tradesman and arrange payment of accounts. Your agreement requires you to liaise with the Body Corporate and report to them the condition of the common areas.

Your responsibilities as a letting agent are the same as that of a Licenced Real Estate Agent. You will be required to let the property and collect rents on behalf of the owner for which you are paid the normal REIQ commission. You must ensure that their property remains in good repair.

All funds collected on behalf of the investors must be held in a trust account which is required to be audited 3 times per year.

In purchasing a Management Rights you BUY a CONTRACT. This is a legal document contracting you to the Body Corporate at a salary normally adjusted by CPI for a set term. This term may extend to a maximum of 25 years. There is inevitably a capital gains factor by way of your ever increasing salary and growth of commissions. The real estate component (your unit) also offers growth.

• The Body Corporate Salary
• Letting Commissions
• Repairs, Maintenance & painting etc
• Mowing of back lawns (permanent complex)
• PABX, cleaning, linen hire, tours etc (holiday building).