If you live in Queensland, buying management rights in Brisbane can be a lucrative business if you know how it works. The process of management rights involves purchasing letting and caretaking rights for quite a few properties in the city. Before making any move, however, it’s necessary to determine the things you have to keep in mind to avoid costly issues later on.
The profitability of the business
Do your research on the net profit of the business before making the purchase. Have your seller disclose the expected profits, and work with an accountant to establish, whether there is any additional income expected from management services. See whether this extra income is sustainable in the long term.
What duties will be expected to do?
Each caretaking agreement is different from the next, so find out early what exactly are the duties you will be required to do. Investigate whether the services you will be required to do will be on a daily, weekly, or monthly basis. Find out if there are outside contractors to do certain services and the compensation expected for these services.
Establish the expected office hours
Some agreements have specific hours set to have duties performed. Find out from the agreement whether you are expected to be contactable at all times. You may work with management rights professional to review the range of expectations on the contract.
What is the reputation of the management rights seller?
You want to work with a credible seller. Conduct a background check on the developer; find out which other properties the same group owns. Talk to the developer’s previous or existing clients to find out their experience. Do not be afraid to ask as many questions as possible.
Buying management rights can be a great investment. But, if done hastily, it can prove risky. A proper examination of the contract agreement, coupled with proper research into the reputation of the developer, is a good way to start.