Management Rights Business Valuations
Management Rights provide you with the right to fulfil the role of a Caretaker and Letting Agent of a unit complex on behalf of the non-resident owners. Depending on the agreement you may also have the right to purchase the managers’ unit in the community titles scheme, which can be used as your home and office or the right to use an office.
There are different types of management rights including:
• Short Term Letting (Holiday or Corporate)
• Permanent Letting (Residential)
• Student Accommodation
At Opulence Consultancy our market valuations utilise the Industry Rule of Thumb Methodology together with an Accounting Methodology to ensure that our reports are informative and have detailed analysis of the financial and statistical information of the business to provide a clear and precise indication of the value of the asset.
Management Rights adopt a “Multiplier” paid on the Net Operating Profit i.e. 4.5 times net operating profit.
The 9 Factors Affecting the Value of your Management Rights include:
1. Current Economic Conditions
3. The Age of the Building
4. Number of Lots in the Complex
5. Letting Pool Statistics
6. Caretakers Agreement Term & Letting Agency Agreement Term
7. Net Operating Profit
8. Due Diligence
9. Historical Management Rights Sales
As part of the valuation service, Opulence Consultancy checks approximately 10% of the rent roll portfolio. This is not a due diligence on the rent roll, simply a check to confirm that the fees advised in the property management software match the management agreement and tenancy agreement.
For more information and a Free quote contact Tarsi today email@example.com or 0420 909 940.