​One example of adding more value to the body corporate is to negotiate better prices from the contractors by establishing a personal relationship with them, as well as doing some bulk buying to get a quality job done for less than a third of the price. The owners will notice the good-quality works being done without high levies, and that’s the key to winning their trust.

Problem-solving is the key here. Basically, it’s about getting good-quality work completed for the best price. Management rights owners are in the best position to solve problems and deliver the best value. Here are a few reasons:

​Managers should work on offering a better value to their clients, which is exactly why management rights is such a stable business. The price of supplying the same service compared to an outside agent or company is more cost effective, because on-site managers eliminate the middle man, and they hunt for the ‘best bang for the dollar’

By focusing on these six simple steps for the next ninety days, you’ll improve your efficiency.

​Step One: List all the caretaking duties and letting activities that use up your time. These can include:

• cutting grass
• mopping the common foyer
• paperwork
• routine inspections
• meeting with committees
• getting quotes
• phone calls
• meetings.

​Include everything, even five-minute tasks. Be specific, clear and brief. Keep going until you’ve listed everything you can think of.

Step Two: List three tasks you’re proficient at and enjoy the most in your management rights business.

​Step Three: List the three most important activities you do that produce income for your management rights business, and put your ninety-day plan in place to focus on it daily.

​Step Four: Name the three most important activities in which you’re not proficient and don’t enjoy.

Step Five: List who you could delegate these tasks to, or contact the SIRE Team to assist you with developing your skills.

Step Six: What’s the one time-consuming activity you’re going to say “No” to right away, and what benefit will result from delegating it?

We run a Management Rights workshops monthly. Go to www.mrformula.com.au for more information.

Don’t go for the broker who offers you the lowest commission. Let’s be real here: if they can’t negotiate on their own commission, what hope do you have of them negotiating the highest price for your management rights business? Negotiation skills are critical in getting you the highest price, while also ensuring the contract goes all the way to settlement.

​Be clear on your desired outcome, and remain upfront with your broker. It gives them the opportunity to reciprocate and promotes a positive and productive working relationship.

Own a management rights business? Planning on selling? Fill in your details below to find out the current multiplier, Or call Richard Skiba or Jessica Dong for an appraisal.

One of our proudest achievements at SIRE Management Rights is that we have a 100 percent body corporate approval rating. If you would like to know more about the body corporate interview process, please
watch these two videos and attend our monthly interview information session which will run in English. 

Below are some questions you might be asked during the interview process which we will run though with you in our Body Corporate Interview Workshop run every month, for the next one coming up txt 0404 331 310 now.

1. Understanding the duties required under the caretaking agreement
   
   1.1 Has the new building manager read the caretaking agreement and the by-laws in their entirety?
   
   1.2 Do you have a current copy of the Body Corporate and Community Management Act 1997?
   
   1.3 Have you read any management rights related books? 
   
   1.4 From reading the agreement, are there any areas of uncertainty as to what is required to fulfil the obligations in the caretaking agreement? For instance, can the new building manager explicitly provide to the committee:
   
   1.4.1 What essential services infrastructure requires maintaining (under legislation) in the common property?
   
   1.4.2 How much gardening will be done?
   
   1.4.3 The methods to be used to keep the common property clean?
   
   ​1.4.4 Is there a pool to be cleaned – if so, how?
   
   1.4.5 What will be the office hours of the new operation?
   
   1.4.6 The probable number of working hours required to performing the caretaking duties?
   
   1.4.7 What are the after-hours contact details?
   
   1.4.8 Who will provide relief services during annual leave, sick leave or holidays?
   
   1.4.9 Does the new building manager understand what equipment is supplied by the body corporate and what equipment the manager must supply themselves?
   
   
   ​
2. Future changes in operations
   
   ​2.1 What opportunities has the new building manager identified in the way the current building manager delivers the services and the way the new building manager wishes to deliver the services?
   
   2.2 Does the new manager require an increase in profitability in order to achieve their personal business projections?
   
   2.3 Will the new building manager be doing property sales?
   
   ​2.4 Agreement Length - Does the new manager know the unexpired term of the current agreement, including remaining option periods?
   
   2.5 Does the new manager rely heavily on finance and need to secure a “top up” for the financier’s conditions?
   
   
   
   
3. Some specifics about the new building manager and how they will deliver their service
   
   3.1 If the new building manager is a company or a partnership, which individuals control the company/partnership?
   
   3.2 Who will be the licensee?
   
   ​​3.3 Will staff be employed to carry-out any duties as stated under the Caretaker’s Agreement?
   
   3.4 Who will be the physical onsite contact, at all times?
   
   3.5 Why did the new manager select this management rights?
   
   3.6 What is the organizational structure and position descriptions of all stakeholders?
   
   
   
   
4. Character
   
   4.1 Have you been convicted of charges invoicing fraud or dishonesty?
   
   ​4.2 Have you been convicted of causing bodily harm or assault?
   
   4.3 Have you been the subject of a domestic violence order?
   
   4.4 Have you ever had judgment entered against you for a debt?
   
   4.5 Are you involved in any litigation? If so, then please provide details. This includes​ applications before the Commissioner for Body Corporate and Community Management.
   
   4.6 Have you ever been involved with a company that has gone into voluntary
   administration, receivership or liquidation?
   
   4.7 Have you been granted a restricted letting licence? If so, please provide a copy. If you have not yet been granted one, then are there reasons why such a licence may be refused?
   
   
   
   
5. Qualifications
   
   5.1 Do you have any formal trade or educational qualifications? If so, then please provide details.
   
   5.2 Are you aware of industry-specific training programs? If so, are you prepared to enroll in skills development programs including continuing professional development?
   
   5.3 Do you go to management rights educational event every month?
   
   5.4 Are you a member of any industry association? If not, are you willing to become an ongoing member for the duration of the agreement?
   
   
   
   
6. Experience
   
   6.1 Have you submitted a written resume detailing your previous work experience? (attach)
   
   6.2 Have you submitted two professional work references? (attach)
   
   6.3 Have you submitted a business plan? (attach)
   
   6.4 Have you ever owned or worked in a management rights business before?
   
   6.5 If you have owned or worked in a management rights business before, then please provide details, such as number of lots and your reason for leaving.
   
   6.6 What experience does the new building manager have in property rentals and property sales?
   
   6.7 What advertising strategies will you put in place to ensure hotel rentals are maintained at the current levels?
   
   6.8 What experience does the new building manager have in facility management?
   
   6.9 Has the new building manager ever done any professional cleaning?
   
   ​6.10 What does the new building manager know about gardens?
   
   6.11 Has the new building manager ever had a job dealing with the public?
   
   6.12 Are you able to develop a Building Management Plan for the maintenance of the common property of the scheme?
   
   
   
   
7. Training
   
   7.1 How much due diligence has the new building manager done on the present operations? Explain how the due diligence has been done?
   
   7.2 Does your contract provide for training by the current resident manager? If so, then please provide details.
   
   ​7.3 It is industry standard for the building manager to provide the new manager training​ during the period 2 weeks before settlement and 2 weeks after settlement.
   
   7.4 Is this amount of “on the job” training adequate for the new manager and for the body corporate?
   
   7.5 Has the new building manager received training in the approval process for authorizing and coding body corporate invoices so that the body corporate accounts are accurate?
   
   ​7.6 Do you have a “Handover” checklist of matters to review with the current resident manager before you become the owner of management rights?
   
   7.7 Have you undertaken a TAFE or REIQ course on management rights?
   
   7.8 Have you undertaken any other training around building/facilities management?
   
   ​7.9 If yes, then provide details of who attended, which course you attended and when you undertook the course.
   
   7.10 If no, are you prepared to undertake the next available course as a condition of the approval of transfer of the management rights?
   
   
   
   
8. Competence
   
   8.1 What is your state of health? Please give details of any health problems you have that may affect performance of your duties.
   
   8.2 Will you be employing staff? If so, then what will they do for you? (Position descriptions and organizational structure chart).
   
   8.3 Will you be involved in the day-to-day management of your business?
   
   ​8.4 Will you take out and maintain professional indemnity insurance to cover the body corporate against your negligence?
   
   
   
   
9. Financial standing
   
   9.1 Are you borrowing money to purchase the management rights? If so, then how much are you borrowing as a percentage of the value of the management rights excluding​ the manager’s unit? (Note: more than 60% would be a matter of concern.)
   
   ​9.2 If a company is purchasing the management rights, then are the directors of the company prepared to give the body corporate a written guarantee for the​ performance of the company’s obligation under the management rights? (Note: a “no” answer to this question would justify declining approval).
   
   ​9.3 If you are obtaining finance, then does your financier require the body corporate to enter a deed of consent to its security over the management rights? (Note: this is normal but you need to ask the question).
   
   9.4 What are the building manager’s expectations in respect of any future contract extensions?
   
   9.5 How will the new building manager’s financial position be affected in the event that no future extension is granted, and the contract is allowed to expire without extension or renewal (which the owners have the right to withhold)?
   
   9.6 Can you provide a certificate from any lender that confirms the strength of the borrower’s financial position?
   
   
   
   
10. Proposed terms of transfer
    
    10.1. What price are you paying for the management rights, excluding the resident manager’s unit? (Note: this is relevant to the calculation of the transfer fee if one is payable).
    
    10.2 Are you, or is any entity related to you, buying the resident manager’s unit?
    
    10.3 Will you agree in writing to be bound by the obligations under the management rights as if you were named as the original resident unit manager?

I like to say, “The riches are in the niches”. On-site managers are in a niche sector, and they have many unique advantages compared to outside agents, such as achieving higher rent rates, lower vacancy rates and being able to perform more inspections at times that are convenient for the prospective clients.

​But some managers are in a better position to recognise and market these advantages to their owners and residents than others. Once they’re identified, managers can systemise their marketing funnels and use the latest technologies to target their prospective clients as identified by following these three simple steps:

1. Create lead magnets with promotional offers that are attractive for the prospective clients.
   ​You can use market funnels like social media, email, text messaging, phone calling, your website and portal advertising.
   
   
2. Add value to your prospective clients on a regular basis.
   Creating content that’s relevant to your clients’ interests, such as special events in the area for guests and residents, or tax benefits for owners with property and fixture depreciation that will increase their after-tax income. These value-adding ideas are promoted to your current and prospective clients using your marketing funnels. 

3. Identify their issues, and offer them your services. ​
​For instance, some owners may have their unit vacant for some time, and you can offer them your letting service with a professional photography rebate after you’ve leased the unit. Once again, these services are promoted using your marketing funnels.

Just remember the rule about fair exchange: only charge the fair amount for the value delivered.​

At SIRE, we have a panel of experts who can assist you with improving your productivity.

​More and more smaller management rights owners are thinking like big businesses. The following are the four areas in which you need to take action and continually work on:

1. Always work to improve the quality and value of the products and services offered to the clients.
2. Make sure investor owners know about your positive contributions, such as building improvements, renovations and the higher returns you get for your clients.
3. Create an automated client capturing and marketing system, steadily build your database of investor owners and craft and promote attention-grabbing messages that your investors will share on their social media networks.
4. Automate your marketing by creating a database of your most valuable clients, and then figure out ways of improving their assets and helping them when they need it.

Although this sounds like a lot of work, it will all pay off in the end. If you follow these steps, you’ll increase your chance to attract investors.

​The typical profile of a building will have some units that are owned by investors, but they’re using outside agents for letting and sales services. There’s always:

​Your marketing effort should concentrate on the 70 percent who are interested in your services and those who are actively shopping for a different agent. Once the trust is built and they become the 3 percent, you’ll get their business. It’s that simple.

​Own a management rights business? Planning on selling? Fill in your details below to find out the current multiplier, Or call Richard Skiba or Jessica Dong for an appraisal.