Summary:
When you acquire management rights, you take on key roles including Caretaking and Letting. Understanding your obligations can help you keep your business strong and maximize your real return.
- Caretaker role
- Letting role
- Who do you make letting arrangements with?
Caretaker role
This involves taking care of the common property, such as the swimming pool, gardens, lighting, driveways and paths. Your agreement with the body corporate should include:
- What you are expected to do for the agreed caretaking fee
- The fees you can expect for additional work or responsibilities
- The opportunity to have your caretaker fee increased at intervals
Letting role
Your letting agreement with the body corporate allows you the exclusive opportunity to let lots within the scheme. It could also require you to:
- Advertise lots available for letting in your scheme
- Vet potential tenants for suitability
- Collect and account for rent
- Operate an office and reception area during business hours.
Who do you make letting arrangements with?
In short, you need to negotiate a separate letting agreement with each lot owner, not the body corporate. Both you and the lot owner are required to complete and sign a standard appointment form that details:
- the services you will provide for the owner
- the fees you will charge for those services
- the duration of the appointment.