Selling Your Management Rights Business: The Process Explained

Thinking about selling your Management Rights business but unsure where to begin? Whether you’re planning a retirement, chasing a lifestyle change, or simply seeing what your asset’s worth, having a clear understanding of the sales process can save time, reduce stress, and improve your result.

Here’s how it works, step by step:

🧭 Step 1: Appraisal & Planning

The first step is to speak with a specialist broker — someone who understands the Management Rights market inside and out.

They’ll conduct a thorough appraisal based on your current financials, length of agreements, manager’s unit value, and letting pool size. But there are other key factors that influence sale price too — like:

• Your relationship with the Body Corporate

• Physical workload attached to the caretaking role

• Location and suburb growth potential

• The overall condition and presentation of the complex

These all contribute to perceived value in a buyer’s eyes, and they’ll guide you on how to prepare accordingly.

✍️ Step 2: Authority to Sell & Financial Preparation

Once you’ve agreed on the best sale strategy, its time to sign a Form 6 — the legal authority that allows them to market your business on your behalf.

At this stage, they’ll also help finalise your Profit & Loss Statement. Offers are typically made based on your advised net profit, but the final sale price is determined by the verified net profit, confirmed by an industry-recognised accountant during due diligence. This makes accurate and up-to-date financials absolutely essential from the start.

They’ll also prepare your marketing package, including professional photos, a detailed Information Memorandum, and listings on major platforms like TheOnsiteManager and AccomProperties.

🤝 Step 3: Marketing, Enquiries & Buyer Qualification

Once your listing is live, they will handle all enquiries — filtering out time-wasters and qualifying serious buyers.

Qualification includes questions like:

• Do they have pre-approved finance or a lending broker on board?

• Do they understand the Management Rights model?

• Have they completed any required training (such as REIQ or licensing prerequisites)?

• Do they have the right budget and goals for your business?

This ensures inspections are only arranged with serious prospects — saving your time and ensuring a smoother sale process.

💼 Step 4: Offers, Contracts & Buyer Due Diligence

When a buyer is ready to proceed, they’ll submit an offer. The broker will assist in the negotiation process to make sure you’re comfortable with the price and conditions.

From there, their team of industry-accredited professionals — including an accountant, solicitor, and finance broker — will conduct detailed due diligence. This process includes:

• Verifying the net profit against your P&L

• Reviewing all Body Corporate minutes and correspondence

• Inspecting the agreements, including Form 6s for letting

• Reviewing your Caretaking and Letting Agreements in detail

It’s a thorough process, but one designed to protect both sides — and if everything stacks up, you move forward with confidence.

📋 Step 5: Body Corporate Consent & Approvals

Management Rights agreements are not transferable without Body Corporate consent.

This means the buyer must attend an interview with the committee to demonstrate their understanding of the role and suitability for the position. The committee can (and should) ask questions to ensure the new manager is a good fit for the community.

Your broker will help prepare both you and the buyer for this important step to ensure it runs smoothly.

🔑 Step 6: Settlement & Handover

Once all conditions are satisfied — including finance and consent — it's time to move to settlement.

At this stage, final payments are made, ownership transfers, and you provide a short training and handover period to the new operator. This is usually a couple of weeks and includes orientation, key contacts, operational tips, and introductions.

From there — you’re free to move on to your next chapter.

🎯 Final Thoughts

Selling Management Rights is more complex than selling a home — it’s a business sale, and it requires experienced handling. But with the right support team and a broker who knows the industry, it’s a clear, structured, and rewarding process.

If you're even thinking about selling in the next 12–18 months, let’s chat. I’m happy to give you a no-obligation appraisal, or simply talk through the options.