Key Investment Insights
1. The current caretaker has been in position for 8.5 years and has a positive relationship with the Body Corporate, Committee, and Owners.
2. Rental demand for the complex is high and vacancies are easily filled due to the high standard of property maintenance.
3. There are 22 years remaining on the 25 year agreement.
4. There are currently gardening and pool maintenance contractors in place, but the new owner can choose to take over these duties.
5. The current caretaker salary is $77,615.
6. The complex requires the caretaker to reside on site and be available during specific hours.
7. The complex uses Property Me Software and tenants pay by direct deposit.
8. The vendor is willing to reduce the Management Rights price by $66,000 for a caretaking only arrangement.
9. The total income for the business is $105,000.
10. The total value of the Managers Apartment is $750,000.
11. The complex is a permanent type with 40 units in total.
12. There are 11 units in the letting pool, 11 holiday units, 25 owner-occupied units, and 3 outside agent units.
13. There is 1 lockup unit in the complex.
14. The agreement term is 25 years with 22 years remaining.
15. The committee is flexible and willing to work with the new caretaker to allow for flexibility once trust is built.
16. The complex is described as easy to operate.
Management Rights Multiplier: 2.37
ROI Estimate: 42.17%