How do I Generate Income?
There are three key areas from which the manager generates income.
1. Body Corporate
In line with the Caretaking Agreement the manager is paid a salary to complete the list of duties contained in the agreement. This salary is usually paid on a monthly basis.
Additional income can be generated from the Body Corporate from time to time by completing work on their behalf that is outside the Caretaking Agreement.
2. Letting Commissions
The individual unit owners in your letting pool will pay a commission and management fee for the manager to manage and let their units.
Commission rates vary from 8.5% to 12% for permanent and holiday letting respectively.
3. Other Income
Additional income is generated from the unit owners for provision of services by the manager on their behalf and these will depend on the type of Management Rights (holiday/permanent etc).
- Cleaning charges
- Linen hire
- Phone System hire
- Credit Card use charges
- General Repairs & Maintenance
- Unit refurbishments or furniture replacement
- Monthly fee to cover postage and administration
- and so on...
Further income can be generated from the provision of services to the guests. Examples include-
- Tour Sales
- Equipment hire
- You may also have a small shop in the office to generate income.
"I would recommend Barry to anyone wanting to enter management rights and needing the services of a finance broker. He offers a professional service based on strong industry knowledge and experience but more than that, works with his clients to build a long term professional relationship based on client success."
Shona Jones - Offshore Noosa Resort