Operating and owning management rights do not require specific management inventory and saves you from facing renting problems. You can actually start by finding an appropriate location and style of building you want to run.
To ensure that you effectively manage your property, it’s important that you know the basic types of management rights. This will give you a step up from the competition.
Permanent
ResortBrokers.com.au notes that this type of complex is usually in residential areas that comprises a number of units or townhouses, and are generally for longer-term accommodation. This kind of management right is less demanding compared to others since it requires less front office duties and marketing.
Holiday
As its name suggests, this type of unit is usually located in holiday tourist areas. To manage this type effectively, you must attract and promote to holidaymakers who plan to have a medium or shorter stays. Compared to the first one, holiday requires considerable levels of service, but also offers greater returns for the Resident Unit Manager. In this complex, front office duties generally operates six to seven days a week.
Corporate
Generally located in the central business district (CBD) of the city, corporate complexes cater mainly to businesspersons and entrepreneurs. The building is somewhat similar to holiday units, but it has additional amenities such as tennis courts, gym, and pools. As it has cooking facilities, many consider this type as a serviced apartment.
Student
You usually find these buildings near colleges or universities. Rooms are usually leased out separately rather than renting the whole unit. For example – for a three-bedroom unit, you will have to find three people who will rent out each room. If you compare this to permanent and holiday units, they have higher returns. The only downside is that you are also required to provide additional services, such as transportation, for students who are a considerable distance from school.
If you want to manage your properties effectively, it’s important that you know the fundamentals and concepts of each management right within the industry. Before you invest on this trade, carefully study the terms and conditions and make smart decisions basing on what is profitable.
