Management Rights

Management Rights

Troy Edwards0416 060 372

troy@shinerealty.com.au

What are Management Rights?

• Management rights involves:- Caretaking of common property- Letting of property

- A person performing this role is known as:- A Resident Unit Manager (RUM)- Onsite manager / manager

Troy Edwards0416 060 372

troy@shinerealty.com.au

What is the role of a manager?• Caretaking:

mowing cleaning the pool enforce bylaws

Troy Edwards0416 060 372

troy@shinerealty.com.au

What is the role of a manager?• Property letting:

move tenants in collect rent for owners move tenants out

Troy Edwards0416 060 372

troy@shinerealty.com.au

What is the role of a manager?• Additional income can be generated:

unit sales maintenance cleaning

Troy Edwards0416 060 372

troy@shinerealty.com.au

How income is generated?

• Caretaking $90,000• Letting of property $110,000• Total income $200,000

• Expenses $10,000• Nett income $190,000

Troy Edwards0416 060 372

troy@shinerealty.com.au

Valuation of Management Rights

• Property $350,000• Business (5 x $190,000) $950,000• Total business worth

$1,300,000

Troy Edwards0416 060 372

troy@shinerealty.com.au

Increasing business income

• Caretaking $93,000• Letting of property $112,000• Additional income $10,000• Total income $215,000

• Expenses $12,000• Nett income $203,000

Troy Edwards0416 060 372

troy@shinerealty.com.au

Increasing business worth

• Property $360,000• Business (5 x $203,000)

$1,015,000• Total business worth

$1,375,000• Total business increase (1 year) $75,000

Troy Edwards0416 060 372

troy@shinerealty.com.au

Why choose Management Rights?

• High return on investment (20%)

• Stable income • Good cash flow• Low outgoings (ie no business rent)• No inventory / goods return• Lifestyle flexibility• Regulated

Troy Edwards0416 060 372

troy@shinerealty.com.au

Decision Factors when buying ?

• Purchase power• Location • Age of complex• Years remaining in the agreement• Potential to increase business

worth• Manager unit• What skills / tasks required• Trade off between factors

Troy Edwards0416 060 372

troy@shinerealty.com.au

Why choose Shine Realty?

• Experienced agents• Professional network• Business lifecycle support

- Buying management rights- Running management rights- Selling management rights

Troy Edwards0416 060 372

troy@shinerealty.com.au

Questions?