Raine & Horne has launched a new business in Queensland that will broker deals between body corporates and onsite managers, tapping into a trend that’s seeing more Australians move into apartments.
The new business, Raine & Horne Onsite Rights, will be led by management rights professionals Bryan McPhail and Mark Fluhart, and builds on their Raine & Horne Onsite Sales business.
“Raine & Horne Onsite Sales and Raine & Horne Onsite Rights are specialist businesses designed to service the management rights industry, which principally deals with the management of holiday and permanent accommodation residential schemes in Queensland,” said Mr Fluhart.
According to Raine & Horne, the management rights industry revolves around an agreement between the local body corporate and an ‘onsite manager’ (or resident manager) of a complex. The onsite manager is part caretaker and part letting agent.
“Having an onsite manager is a much more personal way of dealing with local building issues and tenancies, and an onsite manager can really help build a sense of community within the complex,” Mr Fluhart said.
“Raine & Horne Onsite Rights will broker sales where the onsite manager wishes to sell the entire management rights business, rather than just a specific apartment,” Mr Fluhart continued, who is also vice president of the Brisbane branch of the Australian Resident Accommodation Managers Association (ARAMA).
Mr Fluhart believed a management rights business would appeal to mum and dad entrepreneurs “looking to buy a business with flexible hours that they can operate from home”.
“Generally speaking, most of our purchasers are aged between 45 and 60, and for those looking to purchase a management rights business, entry level complexes start from around $350,000.”
In addition, Mr Fluhart said the median sale price for a management rights business is around $750,000, while some management rights businesses can sell for up to $15 million.
“The management rights industry in Queensland turns over around $2.5 billion a year in revenue, generated through tourism and permanent placement,” he added.
Mr Fluhart said Australia’s shifting attitude to high rise living as one reason why management rights has enjoyed increased popularity in Queensland.
“With the continuous rise in house prices, the quintessential Australian dream of owning a home with a backyard and picket fence is no longer possible for many people,” he said.
“Instead, more people are choosing high density dwellings, run by community title schemes. It is the cheaper alternative to a free-standing home,” says Mr Fluhart.