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Management Rights – What Am I Buying?
In essence management rights are simply
the right to provide caretaking and letting services
within a community title scheme. Also known as a strata
title scheme, a community title scheme is generally
made up of a number of individually owned lots located
within a defined development that encompasses areas
of common property. These schemes can include :
• High rise holiday buildings with swimming
pools, gyms and tennis courts
• Inner
city apartment blocks
• Suburban town
house developments
• CBD short term stay
apartments
• Student Accommodation
• Off the Plan |
Residents in these buildings could be holiday makers,
corporate travelers, permanent rentals or owner occupiers.
When you purchase management rights you are typically
acquiring :
• Ownership of a unit in the building. This
may include title to an office / reception area.
Conversely, the office / reception may be owned
by the body corporate and provided to the manager
for use on an exclusive basis.
•
A contract with the body corporate to provide caretaking
services for the property. Basically the resident
manager is paid an agreed salary to ensure certain
duties are carried out on a regular basis. Gardening,
pool cleaning, cleaning of common areas and monitoring
of by-law compliance are typical duties.
• An agreement with the body corporate to
allow the resident manager to provide letting services
to unit owners within the building. This agreement
is exclusive insofar as the body corporate will
not allow any other party to offer letting services
from a unit in the property. The resident manager
generates income via letting commissions and associated
charges. |
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