What are management rights?
When it comes to starting your own business or finding a vocation that will fit around your own business hours, the accommodation and hospitality industries are highly appealing. Offering flexibility, and the potential to attain that much sort after work-life balance, it also comes with the appeal of meeting lots of new faces.
If you’re considering either purchasing or becoming a manager of an accommodation or hospitality business then you should first familiarise yourself with the term ‘management rights’, and what this means.
What are ‘management rights’?
When you gain the management rights to an accommodation business, you take on responsibility for the day to day running, maintenance and general upkeep of the property.
When it comes to the type of places an Accommodation Manager can work, the location and property type is varied. There are many different properties that can be managed, such as;
- Boutique motels,
- Luxurious holiday resort, and even a
- Residential strata complex with several dozen apartments on site.
Other types of establishments or businesses that include the option to become a manager rather than owner, under a management rights scheme, include;
- Residential housing communities,
- Strata complexes.
What’s involved with management rights?
When you take on the management rights to a property your duties can be many and varied, but they are always laid out in a contractual agreement that you will sign at the start.
Your responsibilities could cover liaising with existing tenants, guests and holidaymakers. Taking care of cleaning and maintenance and other caretaking activities. Ensuring the upkeep and presentation of the property stays at its best.
Additional income from management rights
In addition to the above, your management rights responsibilities may cover the marketing and leasing of properties (such as holiday lets or residential leases). As Manager of a complex, part of your role will be to work with real estate agents or travel agents, and with online platforms such as TripAdvisor or realestate.com.au in order to attract guests and tenants.
Living arrangements with management rights
Most management rights arrangements include living quarters. And, in some cases, the person with the management rights will need to purchase the property or apartment on site in which they will live. This is most common in strata-style apartment buildings or holiday parks which offer long-term accommodation.
With the benefit being that a caretaker is on site permanently, understands the requirements of the complex and has a personal interest in ensuring the place is adequately managed.
The benefits of owning management rights
Having the management rights to a property offers you an opportunity to combine a great lifestyle with a good living. You are free from the need to commute to and from work, which means you have more free time in your day, and in many cases you’ll live in a popular tourist destination.
As the management rights holder, you will be paid an annual salary, agreed between you and the body corporate or the owner of the venue.
In some instances, caretaking requirements are quite minimal and do not require the full 40 hours of attention per week. As the management rights owner, you are often free to work part-time, to study or to devote yourself to building up a ‘side-hustle’ and secondary source of income.
Management rights opportunities are growing
Around Australia, the number of new residential communities under construction also means those looking for management rights have the opportunity to buy into brand new developments, often at an excellent price.
Becoming an accommodation manager for many opens the door to a new chapter in life, one that gives financial stability with the freedom of time. Helping you lead a life that is stress-free and balanced.