Management Rights

How Do Management Rights Work?
Put simply Management Rights is the name given to the business of living in and care-taking a unit or townhouse complex with the added bonus of running your own business from home.

When developers build these complexes and market the units or townhouses to individual owners, they appoint a Resident Unit Manager (RUM) to provide the long term caretaking of the common areas ( e.g. pool, gardens etc.). A caretaking salary is provided - commonly around $1000 to $1200 per unit per annum (e.g. 20 unit complex = a salary of $20,000 to $24,000 p.a.). This amount increases in subsequent years, usually at least by the States CPI adjustment. The base salary and duties involved are documented in the Caretaking Agreement made between you and the Body Corporate ( the developer in the first instance, but then a collective of all unit owners) The Resident Unit Manager also enters into a Letting Agreement in which the Body Corporate grants you the sole rights to operate a Permanent and/or Holiday letting business from within the complex. You can then negotiate with individual owners to let their units for which you will receive a letting commission (typically-12% of gross rentals for holiday letting and 7.5% for permanent letting). 

Holiday Letting also enables other simultaneous income streams through:

  • Unit Cleaning – you run your own cleaning business and make a profit whether hands-on or supervisory only.
  • Linen Hire – You own the linen and charge hire and laundering fees to the owner for each holiday stay.
  • Tour Booking Commissions
  • Car Hire Commissions
  • Unit Maintenance (from changing light bulbs to fixing blinds, locks etc.)
  • Holiday Hire – bodyboards, tennis balls, cots, hi chairs, beach umbrellas etc.
  • There is also the opportunity to make good commissions by selling units in your owncomplex. By simply completing 2 days extra study on the end of your Resident Letting Agent licence you can work with an accredited agency to maximise your income.