by Graham Vercoe
11th July, 2017
Special Report - Management Rights 101 - PART 2
The two main functions of the resident manager are caretaking (which includes managing the physical asset of the owners, security, bookings, guest services, trust fund management and body corporate/unit owner liaison) and the letting responsibilities (the resident manager is licensed to act as agent for investor owners who choose to appoint him as agent).
Management rights have always been a sound investment and has maintained steady growth in Queensland with around 450,000 unit owners and an estimated 1.1 million people living in strata title properties at this time. This is only going to grow with more and more people finding home ownership not within their grasp. Strata title renting or ownership can provide an economic means of stable accommodation with resort-style facilities not possible in stand-alone houses.
This has led to the the growth of MHEs – manufactured housing estates. This is envisaged to be the biggest growth market of the future. This new model is seeing large parcels of greenfield land on the outskirts of towns and cities being converted into this highly profitable new model.
As more empty-nesters seek to downsize in later life, apartments, over 50s communities, age care and gated retirement villages will be major growth areas for strata and community title.
As well, tourism is booming. Queensland alone hosted 2.6 million international visitors in the year ended March 2017, spending $5183 million during an average 21-night stay – the Gold Coast receiving more than 1 million of those. The number of international visitors to Tropical North Queensland grew 15.3 percent to a record 901,000, while 837,000 people (up 16.2 percent) travelled to the region specifically for holidays.
Those international visitors to Queensland spent $5.2 billion - equivalent of $100 million every week - around the state over the same period. Most of these stayed in strata title hotels, resorts and apartment complexes leading to above average occupancy rates.
Queensland’s tourism growth will continue to flourish with an added boost next year with the Commonwealth Games bringing in more than 6600 competitors plus their entourages and spectators.
The management rights industry continues to provide a very important commercial role in the diversity of managing the day-to-day growth and issues of density living and will continue to be an integral driving force in ensuring that the growth of community living is responsibly managed by a group of experienced people focussed on delivering outcomes for the benefit of all stakeholders.
Many people regard management rights as the ultimate home-based business, offering lifestyle, excellent return on investment and good re-sale potential. It provides a valuable income venture for family businesses, retirees, silent partners and other investors with a considerable lifestyle advantage, albeit 24/7/365. Properties can range from resorts with only a handful of units up to multi-million dollar high rises. The rights can be acquired off-the-plan, as newbuilds or already functioning businesses and banks are most friendly to financing management rights ventures.
Backing up investors is a solid force of solicitors, accountants, financiers and brokers that have unparalleled expertise in management rights to seamlessly, hassle-free guide and assist those that enter this incredible lifestyle venture.
Graham Vercoe - Resort Publishing