Buying property management rights is like buying a limited range property management portfolio combined with a hotel.
It can be a good thing, and can suit some people.
You will need a property management license (if you are doing it in QLD, or a full RE license in other states).
These rights usually involve the purchase of a unit within the establishment also, which you may elect to live in, or rent out. Be aware that this is usually a ground floor unit at the back of the complex. This being said, if you get in at the pre-sales stage, you can have the management rights assigned to any unit you choose, including the penthouse!!
The work involved is pretty much like a hotel reception, you take bookings look after the guests, make sure the rooms are clean (often actually cleaning them is involved) and also look after permanent tenants.
Usually these buildings are devided into a third owner occupier (or retained by the owners as holiday premises), a third permanent rentals (People who have normal leases), and a third retained as holiday letting (i.e. the hotel style).
There is a lot of work involved, and this work will be proportional to the number of units used as holiday letting, but then, so will the return.
There are a couple of things to remember:
The owners of the units do NOT have to use your management, they CAN choose to have the agent down the road manage it for them.
You are buying yourself a job, this is neither good nor bad, you just need to be aware of what you are getting into. This is NOT passive investment!!
You can buy the management and install a manager. This would be a more passive way of doing things, but I would be wary of the return.
There is not a lot of "fun time" available to the managers. They may live on the beach, but only get there very occasionally.
This being said, the best way to research this issue is to go away for a week or so, staying in a different unit complex every night. Get friendly with the managers, they are usually very happy to talk to you. Also, sometimes local real estate agents have sale rights to new buildings and are a useful source of information.
hope this helps
asy
