Management Rights Investing: Permanent or Short Term Complexes?

Holiday ComplexAs with any real estate transaction, investing in management rights should always come after extensive research of the pros and cons. Dozens of factors affect whether a contract and its accompanying property are worth buying, but one of the most important is whether the complex caters to short-term or long-term tenants.

Resortbrokers.com.au explains that management rights for sale at the Gold Coast are generally separated to two major categories: permanent letting complexes and holiday complexes. The first might include senior communities and private subdivisions, while the latter usually means properties like resorts and hotels.

This is an important distinction. While the manager’s duties are basically the same, each requires a different skill set. Your day-to-day activities and profit potential will depend on which you choose to invest in.

Permanent Complexes

These are properties where tenants stay long-term, usually for six months or more. Managing a permanent or residential letting complex requires excellent communication and caretaking skills. Your primary responsibilities will be to find high quality tenants, maintain the lots, ensure that renters are happy, and keep vacancy rates as low as possible.

You will spend less time actively managing tenants, and the important part is to build good relationships with them. Marketing skills are also less important, since if you are doing your job correctly, you will only occasionally need to find new tenants. Income is quite reliable, making permanent complexes a good choice for the investor seeking stability.

Short Term Complexes

Meanwhile, short-term or holiday complexes typically cater to tourists and corporate clients. Whether you are managing a hotel or a short-term letting apartment, this is a fast-paced operation that requires significant understanding of the tourism industry. Marketing and customer service will take up a large amount of your time, along with managing other staff.

Profits here are excellent, and managers can usually build additional income streams by offering optional services and earning commissions. However, as with all businesses that rely on tourism, there are peak and low seasons to worry about. Knowing how to manage cash flow is crucial to maintain the business’ sustainability.

Both types of management rights complexes have their own selling points. The best choice is the one that fits your skills and personal preferences better.