Key Roles in Management Rights
When you acquire management rights, you take on key roles including Caretaking and Letting.
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, for example, the caretaker role, the letting role, and who do you make letting arrangements with?
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
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.
Approved applicants only. Terms and conditions apply and are available on request. Fees and charges are payable. Current rates, fees and charges are subject to change without notice.
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The information contained in the Suncorp Bank Management Rights web pages is of a general nature only and does not constitute financial advice. We have not taken into consideration the personal objectives, circumstances or financial needs of any person.
Whilst every effort has been made to ensure the information contained in this guide (which is provided for general information purposes only) is correct as at 1st September 2010, Suncorp Bank does not guarantee or give any warranty in this regard and does not accept any responsibility or liability for any discrepancies or inaccuracies.