Many people are curious what management rights mean. Management and letting rights, sometimes known only as management rights, is a kind of business enterprise. It refers to the managerial rights given to an individual, who would take up the responsibility of managing a residential complex. This individual will then assume the title of an on-site manager, who will then buy the managerial unit in the complex as a place of residence and an office.
Since the manager stays in the complex, it is in their interest to ensure that everything runs smoothly because the value of the units reflects on theirs. Resort Brokers Australia cites an example that if the units devalue because of lack of maintenance, the manager’s does likewise.
The on-site manager is ‘buys’ the managerial rights from a collective who owns the complex, known as the ‘Body Corporate’. This group pays on-site managers their salary.
The on-site manager has two main responsibilities to fulfil in this capacity:
• The manager must provide the maintenance of the complex’s common property. On-site managers ensure that the tenants follow the bylaws of the complex, and report to the Body Corporate with matters pertaining to the residential complex itself. The on-site manager is responsible for taking care of the repairs in the units, maintaining, cleaning charges and other statements of fees, etc.
• The manager also acts as a letting agent, functioning as a facilitator, to find individuals who can rent vacant units in the complex. On-site managers have full authority in letting or leasing out units to tenants. The on-site manager receives a commission as well as management fees for rendering this service.
To enter the management and letting rights business, you require a letting licence. You may also require having good managerial and organisational skills and leadership as well. This type of enterprise features a high rate of return, as well as having a good re-sale potential; and because the manager’s unit is also their home, entrepreneurs often call it the ‘ultimate home-based job’.
