MANAGEMENT RIGHTS LISTED WITH BROADWALK BUSINESS BROKERS

How Do Management Rights Work?

Put simply Management Rights is the name given to the business of living in and care-taking a unit or townhouse complex with the added bonus of running your own business from home.

When developers build these complexes and market the units or townhouses to individual owners, they appoint a Resident Unit Manager (RUM) to provide the long term caretaking of the common areas ( e.g. pool, gardens etc.). A caretaking salary is provided - commonly around $1000 to $1200 per unit per annum (e.g. 20 unit complex = a salary of $20,000 to $24,000 p.a.). This amount increases in subsequent years, usually at least by the States CPI adjustment. The base salary and duties involved are documented in the Caretaking Agreement made between you and the Body Corporate ( the developer in the first instance, but then a collective of all unit owners) The Resident Unit Manager also enters into a Letting Agreement in which the Body Corporate grants you the sole rights to operate a Permanent and/or Holiday letting business from within the complex. You can then negotiate with individual owners to let their units for which you will receive a letting commission (typically-12% of gross rentals for holiday letting and 7.5% for permanent letting). Holiday Letting also enables other simultaneous income streams through:-

Unit Cleaning – you run your own cleaning business and make a profit whether hands-on or supervisory only.
Linen Hire – You own the linen and charge hire & laundering fees to the owner for each holiday stay.
Tour Booking Commissions
Car Hire Commissions
Unit Maintenance (from changing light bulbs to fixing blinds, locks etc.)
Holiday Hire – bodyboards, tennis balls, cots, hi chairs, beach umbrellas etc.

How Much Do Management Rights Cost ?
Management Rights sell at a multiple of the nett profit (i.e. after all business expenses) with the multiple currently between 4 to 5 times nett. The multiple varies for a number of reasons – position, trading history, length of agreements, future growth, supply & demand etc.
For example if the business has a nett profit of $100,000 and a multiple of 4 times, you will be paying $400,000 for the business plus the value of the managers unit.

What Size Business Should I Look For ?
You should discuss this question with your specialist Management Rights financier & accountant so that you have the confidence of making an offer if the right business presents itself. Choosing the level of borrowing you are comfortable with is important, however what becomes obvious when looking at the various options is that the more you spend on the business the greater your income will be.

Management Rights for sale throughout New South Wales, Victoria & Queensland - Broadwalk Business Brokers are the leading Management Rights sales specialist. If you require further information of any Businesses for sale please click the enquire button of the business and one of our Management Rights Brokers will contact you with more detail shortly.

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Broadwalk Business Brokers

5 Park Ave "Elders House"

Coffs Harbour NSW 2450

Postal Address :

PO Box 2440

Coffs Harbour NSW 2450

Contact Numbers: 02 6651 7999 International 61 2 6651 7999

Fax: 02 6651 7888 International 61 2 6651 7888

broadwalkbrokers@westnet.com.au