Management Rights
noun / The business of on-site caretaking of common property and letting of strata titled lots (units/dwellings) with a building or complex. The owner of the Management Rights is usually referred to as the Resident Manager.
Strata titled
Describes a building or complex where each individual unit can be owned by an individual person
Lot
The term given to an individual unit in walk-up or high-rise, or an individual villa or townhouse in a complex
Owner occupiers
People who permanently live in the unit that they personally own
Investors
People who rent their unit out to tenants
Lock-ups
Describes a unit where the owner only lives in it occasionally, usually for holiday reasons. When they do not live in it, they lock it up and it stays empty
Common property
Describes all land contained within a high-rise or complex that does not form a part of the individual ‘lots’ (eg. stairwells, paths, gardens, pool, gym, BBQ area etc.)
Management rights
The business of on-site caretaking and letting of ‘strata titled’ ‘lots’
Manager’s unit
The unit within a high-rise or complex allocated for the manager / management rights owner to reside in
Caretaking agreement
This is a legal document that outlines the caretaking duties required of a manager, the salary that a manager will receive and the length of the term that the manager is engaged for (amongst other things)
Letting agreement
Usually in conjunction with the caretaking agreement, this permits a manager to provide an exclusive on-site letting service to owners wishing to let their property to tenants, and outlines the length of the term for which this authority is given
Inventory
It is common practice is for the office and caretaking equipment required to operate a management rights business to be passed from the outgoing manager to the incoming manager, this is called inventory. This will include items such as lawn-mowers, whipper-snippers, computers and printers
Standard module
A type of caretaking/letting agreements geared toward a complex that is predominately owner occupied, providing a maximum of 10 years engagement at one time
Accommodation module
A type of caretaking / letting agreements geared toward a complex that is predominately tenanted, providing a maximum of 25 years engagement at one time
Permanent management rights
Describes the business of managing a complex or high-rise where the residents are comprised predominately of people who occupy the units as their primary place of residence
Short-term management rights
This consists of both holiday and corporate management rights and describes the business of managing high-rises or complexes where residents stay for a relatively short time - these are normally located in tourism or business hubs
Off-the-plan management rights
This describes the purchase of a management rights business prior to or during its construction, directly from the developer, usually based on projected incomes
Due diligence
When the purchase of a management rights business is agreed, there is a period between contracts being signed and the transaction becoming finalised, where the purchaser conducts a number of exercises to ensure that the business is sound. This is known as due diligence and consists of income verification, legal checks and finance approval
