What are Management Rights

🏢 What Are Management Rights?

Management Rights is a business model where you purchase the right to manage a residential complex — typically a group of strata-titled apartments or townhouses. You can live onsite or nearby and are contracted to perform two roles:

1. Caretaking – Maintaining the common property such as gardens, bins, stairwells, pools and shared areas. For this, you receive a fixed salary from the Body Corporate.

2. Letting – If you choose, you can also act as the onsite letting agent for rental units in the complex. You earn letting commissions and fees — just like a real estate agent.

These income streams create a stable, profitable business ideal for anyone chasing financial independence and a flexible lifestyle. They’re popular with individuals, couples, semi-retirees and those ready to be their own boss.

🗂 Key Terms You Should Know Before Buying

Before diving in, here are some essential terms that will help you make sense of the industry:

✅ Caretaking & Letting Agreements

These formal contracts outline your responsibilities and income rights. Approved by the Body Corporate, they are central to the value of your business and determine the scope of your work and how long you're contracted for.

✅ Standard Module vs Accommodation Module

Agreements fall under one of two Body Corporate governance structures:

• Standard Module – Typically for owner-occupied complexes. Maximum agreement term is 10 years.

• Accommodation Module – Common in investor-focused complexes. Maximum agreement term is 25 years.

✅ Original Term + Options

Agreements are often structured with an initial term (e.g. 10 years), plus a series of options (e.g. 3 x 5 years).

To maintain the full agreement length, you must exercise these options by giving written notice to the Body Corporate before the deadline. If you miss it, the option lapses — reducing the term of your agreement, which can lower your business’s resale value.

This is different from topping up, which involves extending the agreement back to its statutory maximum. Topping up requires approval from the Body Corporate via a formal vote.

✅ Letting Pool

This refers to the number of units within the complex that you manage as rentals. The bigger the letting pool, the greater your opportunity to earn from commissions and fees.

🛠 Steps to Buying Management Rights

Here’s a straightforward overview of how to get started:

1. Talk to a Specialist Broker – Like me! I’ll help you find a business that suits your lifestyle, goals and investment budget.

2. Build Your Team – You’ll need a solicitor, accountant and finance broker — all with Management Rights experience.

3. Inspect & Review – Visit the complex, understand the caretaking duties and review the agreements and financials.

4. Make an Offer – Once accepted, your solicitor prepares draft contracts.

5. Due Diligence – You’ll verify income, check legal compliance and assess operational health.

6. Finance & Approvals – Secure your loan and obtain Body Corporate approval for the assignment of agreements.

7. Settlement & Training – You complete the purchase, receive handover training, and begin your new role as manager.

🎯 Final Thoughts

While Management Rights may feel complex at first glance, once you understand the basics, it’s a rewarding business that combines lifestyle, income and autonomy.

Thinking of buying? I’d be happy to talk through your goals and help you take that first step confidently.