management of serviced apartment questions!

[petronator]

Hi all

Im new to all this and I just wanted to know some questions on this whole serviced apartment/holiday letting business.

I know in Queensland when you buy a unit, you can place it in the buildings rental pool at your leisure and obtain an income, the management /hoiday rental pool of the building is also associated with the purchase of the 'management rights' for the building.

In other cities, such as Melbourne how does the whole management work of strata buildings,
how is the serviced operator eg: Oaks, Quest, other private smaller companies eg: Nova Star Gate hotel apartment assigned or obtained for the building? do they purchase any sort of 'rights' to manage or use the buildings for serviced apartment purposes?
Does it have anything to do with the body corporate to approve or find an operator?
Who decides whether the building will be ONLY residential or offer serviced apartment short term letting?
also who looks after the common areas in these serviced apartments, is that the job of the serviced apartment operator or does the body corp still have to deal with all that?

Thanks in advance. Great forum Btw!

 

[petronator]

any ideas at all? surely there must be a simple answer to how serviced apartment operators obtain/are assigned to a building :S ?

 

[marg4000]

When you buy a unit, a lot depends on the basis on which it is being sold. If it has no restrictions, you are free to live in it, rent it permanently or holiday rent. If there are a lot of holiday rentals managed by the unit manager then you can put it in the rental pool, the conditions of which vary.

However, sometimes entire blocks are built for the purpose of short-term rentals. Usually the whole building is leased to (for example) Quest to operate. Units are sold to individual owners, usually a "dual key" apartment. This consists of a corridor doorway which opens into a little foyer with two doors. One leads to a one bedroom apartment, the other to a studio unit and therefore they can be rented individually or together. When you buy a unit it is a condition that you sign a lease with Quest to manage, usually on a semi-commercial basis. Leases can be for many years. You have no options - the unit MUST be leased back to the operator.
Marg

 

[petronator]

hi thanks for your reply,

so in this case who would own the rights to the management of the building? would this still be the developer who then leases it out to eg: Quest or another operator?

can the developer sell the leasing rights to another person or company?

 

[Propertunity]

can the developer sell the leasing rights to another person or company?

Yes, these things are regularly bought and sold - usually at a PE around 5.

 

[petronator]

ah ok, do you know where you can browse listings for these sort of things? any key websites/advertisement material ?

 

[Propertunity]

Businesses for sale - or try a business broker web-site.

 

[petronator]

I tried, couldnt find any at all... it cant be right then :S

i only found one, but that was the whole building itself for sale as a whole :S

 

[jaycee]

Are you looking for serviced apartments for sale ? google "serviced apartments"

 

[petronator]

sort of, im trying to work out how the whole serviced apartment business in Victoria works? :S
As in QLd, we use to own a share of a management right which over there is pretty much the right to manage the building and conduct the letting business from it.

 

[Propertunity]

I tried, couldnt find any at all... it cant be right then :S

google "resident unit manager" or RUM for short