Main Beach is a suburb made up of many types of residential properties but the most prevalent type is definitely the residential apartment. Most of these buildings/complexes have onsite managers.
When the developer constructs the building they not only sell the apartments but also the management rights. The management rights not only provide a salary to the Manager for ‘Caretaking’ of the building, but also the right to operate their own business on site to manage the letting of the apartments within the complex, be it holiday let or long term letting. The onsite manager is often presented as the best alternative (and sometimes as the only option) because this is in the developer’s best interests. The more rentals the developer hands over to the new onsite manager means a higher price for the rights and more money in their pocket. The new owners often sign the paperwork without due consideration.
What you may not know is that you are under no obligation to appoint the onsite manager and are indeed able to appoint an agent other than the onsite manager to manage (or sell) your property.
Onsite managers operate under the Residential Tenancy and Rooming Accommodation Act 2008 and Property Occupations Act 2014 exactly as agents do. What owners need to consider is that whilst there are advantages to appointing the onsite manager it is important to weigh up all your options. Do some homework and see what the local agents offer in the way of services and fees!
It is indeed a fact that the business model surrounding onsite management produces conflicts of interest on a very regular basis. This makes it difficult if they are appointed by you to act in your best interests, also appointed to act in the best interests of other owners and have their owned vested interest to consider.
Perhaps the largest conflict of interest occurs when a manager is appointed as the selling agent, particularly of a property in their letting pool. It is clearly in the best interest of the onsite manager to sell to an investor, rather than an owner who will occupy the apartment, taking it out of their income stream and ultimate on the on sale value of the management rights. The market for sale can be narrowed significantly.
Here at MBPS we are highly educated and skilled in managing or marketing your property and would love to assist.
If you would like some advice, or a rental or sales appraisal don’t hesitate to call Shelley Fuller on 0408 00 00 88.
EMAIL : [email protected]
PHONE : 0408 00 00 88
Posted By Shelley Fuller
Updated : 11th October 2021 | Words : 425 | Views : 2189
 |
 |
 |
