There are normally two parts to the Manager’s duties and two major parts to the Manager’s income.
1. Body Corporate Salary:
The Body Corporate pays the Manager a salary, monthly in arrears, to maintain the Common Property, see that the By-Laws are adhered to, and report on any matters pertaining to the complex. The average salary range is between $800 – $1200 per unit in your complex. The salary will depend on the type and size of complex.
The Body Corporate also pays for all the day-to-day expenses of looking after the common property. Such things as mower fuel & repairs, pool chemicals & fertilizer are expenses for the Body Corporate, not the Manager. Usually all the necessary equipment is owned by the Body Corporate, and provided for the use of the Manager.
2. Other Income Sources:
You are paid commission and management fees by the individual unit owners for letting out their property, accounting for the rent, and ensuring that the rental property is kept in good condition.
The average rates of commission are:
12% Commission for Holiday Units
7.50% Commission for Permanent Letting
Some of the other incomes:
Hire of equipment – cot hire, DVD hire, surfboards, cars etc..
Unlike most other businesses, the income from Management Rights has regular annual increases through adjustments to the Body Corporate salary by way of C.P.I. or National Wage Case, and also increase in tariffs which in turn increases your commission – remember every dollar increase in
your net annual returns can be multiplied by the going rate for re-sale purposes