Business World

Onsite Management Success: From Victoria to the World

Management RightsFor the most part, property management poses a distinct challenge for business owners. Though salary is certainly a good incentive, paying a property manager enough cash can fall short in the long run. For starters, the manager employed does not have a vested interest in the property itself, making his loyalty to the ultimate success of the endeavour largely superficial.

There is a way to come up with a solution to this age-old problem. And the results are nothing but terrific. Learn it from Victoria.

A Brilliant Idea

The decade of the ‘70s saw Victoria’s infrastructure building propel at a very fast pace. Local and international investors seem to have found gold all around the region, transforming acres and acres of land into valuable real estate, from resorts to hotels to apartments.

Sure, it made the land one tourist hot spot in just a span of a few years. However, with this golden opportunity came a headache: property management.

Good thing Victorians came up with one brilliant idea that is going to redefine property overseeing to the core. Enter management rights.

A Distinct Advantage

According to Resort Brokers Australia, management rights allow a business owner to own the ‘manager’s unit’ in a multi-owned complex.

Its beauty comes from the fact that this management rights owner is mandated to oversee the smooth operation of the whole complex. In return, he is given wages and necessary support for the work done as a resident manager.

But his earnings does not end there. He also earns commissions from sub-letting other units of the complex, with pre-agreed terms with other unit owners, to quality tenants.

Because he is not just a resident manager, but is also part-owner, a distinct advantage is formed. As it is in his vested interest, keeping the units and the whole complex in peak condition is his primary concern.

In this sense, it is a marriage made in heaven. Essentially, this is a management set-up the world can learn greatly from — one that has contributed greatly to Australia’s overwhelming success in real estate.