Home – New Forums Starting your journey Management rights in Queensland?

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  • #996321
    jeffs
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    I’ve spent some time studying them and quite close to pulling the trigger. I have no prior experience in this, but people I’ve talked to seem to come from all walks of life. I would like to buy and run it myself, with the idea of hiring a manager to run it if and when the time is right.

    Wondering:
    – Which pocket of qld makes the most sense (I’m willing to move)?
    – Resort/holiday vs permanent vs cbd?
    – Any particular pitfalls/issues to look out for?
    – What is the most difficult/important thing to manage?
    – What do first-time managers (like myself) usually mess up?
    – How hard is it to hire a manager to run this in a few years time (just thinking ahead)?
    – Any thoughts would be greatly appreciated.

    Thanks in advance.

    #1206791
    Paul – FS Concierge
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    Hi Jeffs,

    Probably the I have observed holiday managers, some of which had previously been permanent managers.

    Permanent on the whole requires a lot less work, “pound for pound”

    Body Corporate committees can be a nightmare if you get the wrong one.

    That’s all I can help with.

    Hopefully some helpful members will be along soon with some on-point advice.

    Cheers

    #1206792
    ILS_GUy
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    Hi Jeffs
    I cant answer your questions directly but can comment based on my experience with owning a unit in a managed property.

    As Paul has noted, the Body Corp committee can make or break a complex / your life. Spend time getting to know the committee prior to committing to a property.

    My unit is permanently let in a complex where a lot of units are in the holiday pool. This means the site manager has little to do with the unit but still has oversight, and will sometimes have to deal with troublesome tenants.

    Holiday lets have a whole different side to them, that of marketing to get customers, looking after the comings and goings of the holiday makers, keeping control over rowdy/ drunk ones, providing guidance to the holiday makers as to what to do, where to go etc.
    There is also the cleaning of the units each week, monitoring of the state of the units and inventory / damage etc.

    I dont know for sure, but my understanding is that there is not heaps of money to be made in the management rights so it is really best suited to those that want to do the work themselves, its a lifestyle thing. I am sure it wont be difficult to find a manager in the future, but it may not be economic for you, ie you have to pay them more than you make.

    An issue we are going through right now is that the manager got a loan for 750k to buy the rights (not sure if that includes price of unit as well, or just the rights). They got a confirmed contract for 15 years. They now want to restructure that loan and the bank is wanting a 30 year contract for security, but as owners we are hesitant to commit for that long, even though they are currently doing a good job. The risk is that if their standards fall, or as in your case they put in a manager in their place, then with such a long contract it could be difficult to get rid of them.

    You need to talk to a few managers and find out the fine details of running these places.
    good luck.

    #1206793
    bb1
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    ILS_GUy, post: 246033, member: 93348 wrote:
    As Paul has noted, the Body Corp committee can make or break a complex / your life. Spend time getting to know the committee prior to committing to a property.
    .

    this is excellent advise, as I do a lot of work for committee’s, but an important note is don’t just focus on the committee, keep all owners on side. As tomorrow the committee can get the flick and you could end up with a troublesome committee. I have seen it happen, new committee new broom and new issues.

    #1206794
    jeffs
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    As Paul has noted, the Body Corp committee can make or break a complex / your life. Spend time getting to know the committee prior to committing to a property.

    Thanks for add the advice.

    What should I be looking for on the above? I am trying to make sure the committee has no jerks/assholes. But beyond that, are there specific qualities or questions I should be asking the committee?

    #1206795
    ILS_GUy
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    jeffs, post: 246045, member: 92104 wrote:
    What should I be looking for on the above? I am trying to make sure the committee has no jerks/assholes. But beyond that, are there specific qualities or questions I should be asking the committee?

    Unfortunately you have no control over current or future members, and a Committee that works together well now may not after the next AGM when someone else is appointed to it. The BC Secretary / Manager can have a big influence on the Committee, so if you find you could work with them then the chances are that they can get the committee running in a way that works with you.
    Talk to the Secretary / Manager and ask how they have observed the Committee working.
    Do they actually make decisions or forever put things off by getting reports or lots of quotes etc.
    Are they able to get the owners to pay their levies. If not then they don’t have funds to do the maintenance, or repairs or upgrades or whatever. This can be important in holiday lets, ie the pool cant be fixed quickly, so the customers get let down.
    Do they have one or 2 very dominant people on the Committee that always need to get their way. This can stop the others agreeing to do anything.
    What is their attitude to you as the property manager ? are you there to look after their property or to run a holiday let business. Those in the holiday pool will probably support you, but those with permanent lets may either not care or see you as an overhead to them, running a business that has nothing to do with them but charging for time managing the property. How much of that charge is really for managing the property and how much is for running your business.

    #1206796
    StuartL
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    Which pocked of Qld?

    I dealt with a few managers over the last couple of years and the ones in busy year-round tourist towns seem far more relaxed than those in seasonal tourist towns.

    It seems that those who are managing complexes in seasonal towns really do have to watch their pennies in the off season and have to work really hard at getting the best occupancy figures in their tourist season.

    #1206797
    Corey
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    Have you considered networking with The Real Estate Institute of Queensland (REIQ) ?

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