When people look at the business model of management rights, they would often describe it as a home with an income. People who purchase management rights act as an on-site manager who takes care of a property on behalf of a body corporate. On-site managers have a role similar to a caretaker, but the main difference is that these managers can earn more than one source of income.
Some people say management rights started in Queensland and people, especially retirees, started entering this business because of the attractive income scheme. It allows people to live the lifestyle of their dreams and stay in places they could not normally afford.
On-site managers can earn money in two ways:
The body corporate pays on-site managers with a fixed annual salary. Depending on the size, location and the type of property, the salary can range from $1000 to $1200 per unit per annum. In exchange for the salary, these managers will manage the repair and maintenance of the common areas of a property. Common areas are places where guests hang out such as lobbies, gardens, basketball courts, pools, and pathways.
On-site managers need not ask for a raise. The salary is usually indexed to the Consumer Price Index (CPI) and this allows the annual salary to increase automatically.
In addition to a fixed salary, on-site managers can make money on the side through commission income. They can charge renters with maintenance and servicing fees. If they are in charge of a holiday complex, they can substantially increase their income by charging guests for internet usage, sport equipment rental, room service and much more.
To earn commission from a letting business, a Restricted Letting Agent’s Licence is required. On-site managers must pass the required training courses and pay licence and criminal history check fees.
The income potential of on-site managers is very high. To succeed in this role, on-site managers need to be both people-oriented and task-oriented.