The Management Rights business model is one in which customers are clearly defined – the investor and the Body Corporate. Each of them has defined roles and responsibilities which are legislated. What investors can look forward to? Predictable monthly income, flexibility to manage your schedule, a good lifestyle and no bad debts. It is not easy, but a great business venture.
For those interested in investing in this model, here are a few FAQs which offer insights into the Management Rights for motels for sale in Brisbane.
Frequently Asked Questions:
How much would an MR business cost?
There are two parts to a purchase – real estate and the business. The manager’s unit is the first part. Investors have to buy it and can choose to live there or rent it out. The value of the MR rights business is a multiple of the profits and ranges between 3.5 and 5.5 and depends on a number of factors.
What other costs should I expect?
Add stamp duty, registration costs, accounting and legal fees, license and loan costs to the purchase price of the two components mentioned above.
How much can I loan?
Rule of thumb, most banks will loan about 7-% of the total price, inclusive of legal fees and stamp duty. This will be calculated based on a person’s ability to repay the loan.
Do I need a license to do work?
Yes. An investor will have to complete a certification course and get a Resident Letting Agents License in the state they live and work in.
What does the Body Corporate do?
The Body Corporate offers supplies and also contractors to help owners and residents of the complex to keep their spaces neat and tidy.
What skills does an investor need?
Common sense and good listening skills will help. Just like working in a service industry, dealing with different people will require good communication skills.
How does an investor get paid?
The Body Corporate pays a salary to the manager to carry out activities mentioned in the contract. It is also the manager’s duty to ensure that bylaws are enforced.
These are just a few basic questions which should answer a novice investor’s interest. There are a lot more things to consider. Talk to a company dealing with Management Rights to know more.