Frequently asked questions regarding Management Rights can range from the frivolous to the bizarre, however if never asked, never answered.
Can I have a pet?
Refer to the By Laws of the particular scheme as some say NO, others say YES subject to certain conditions. The majority are subject to Body Corporate or Owners Corporation approval. The pet may have to be under a certain weight (eg. > 10kg) as well. Very few holiday buildings will approve a dog.
Do I have to man the office?
For the literal answer you need to refer to the Management and Letting Agreements. From experience, it is very important to man the office in a holiday building as this is when you will make significant bookings and receive other related income and grow your business.
Do I have to live on site?
To obtain a restricted letting licence you are required to live on site, however a nominee may be sufficient to meet the requirement of the agreements.
For further information;
- Refer to your agreements,
- Talk with a recognised industry lawyer,
- Refer to the Industry Resources on this site.
Do I require staff?
That’s a good question – the answer is dependent upon the size, type and, importantly, the generated Nett Profit.
Assistance of some description may be required as you may have:
- Office management,
- Building maintenance,
- Mowing lawns, Maintaining pools,
- Servicing owners and guests, and
Our best recommendation would be to seek qualified industry advice.
The Body Corporate Remuneration sometimes incorrectly referred to as the Salary, how do I earn this?
The remuneration is usually paid one month in arrears and is paid to Management as per each individual buildings Management Agreement.
You earn the remuneration for attending to the daily, weekly, monthly and as required duties as clearly defined in the Agreement.
How much can I borrow and how do I arrange the loan?
Talk to a recognised industry finance broker or bank.
Each potential borrow in this industry has particular points of difference. The current market allows most potential purchasers to arrange borrowings tailored to their resources.
Up to 75% borrowings are certainly achievable in some scenarios dependent upon financial standing and experience.
(The most frequently asked question)
How much will it cost and what multiplier will I pay?
The multiplier is the year’s net return x what a willing buyer will pay a willing seller. Simple supply and demand.
$100,000 nett profit
Say 4.0 x the nett profit
On the other scale: $800,000 nett profit x 5.5x the nett profit = $4,400,000 plus the associated real estate.
For The Answer To Your Questions
Phone us or call in to the office for a chat and we’ll eliminate at least part of the so-called hidden ‘mysteries’ of our wonderful industry.
Email us email@example.com or phone today on 1300 928 556
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