When it comes to owning an accommodation business, one of the main challenges you face is finding the right management setup. Chances are your business would enjoy several bookings, especially during peak season. Now, if you don’t have an on-site manager during this time, things can get a little tricky.
This is why many are starting to shift from this idea of a manager that doesn’t stay within the premises. This is the reason behind the sudden popularity of management rights around Australia. As a matter of fact, this business setup isn’t limited to hotels, as ResortBrokers.com.au says caravan parks up for sale – or at least some of them – employ this strategy, too.
What exactly are management rights, you might ask. This is a deal wherein you let someone else take care of the property – from housekeeping to finding tenants. There are actually many different things that make this deal a great choice when you’re managing a commercial property. Some examples include the following:
- On-site presence – The buyer of management rights acquires a portion of the lot for themselves. Often, the buyer turns this into the on-site office where they hold all transactions. In effect, you get to have people manning the premises 24/7. You wouldn’t have to worry about security and all that afterwards.
- Stabilised cash flow – Although accommodation properties are mostly seasonal, an on-site manager paves the way for a more stable cash flow. Management rights buyers get a share of the property’s stakes. In effect, the manager would be up in arms making sure that the property never remains unoccupied for too long.
- Convenience – Perhaps this is the most charming advantage of using management rights as a business strategy. As the property owner, you wouldn’t have to worry about things such as the maintenance of facilities and the search for tenants. After all, the buyer of management rights does all that.
Put simply, management rights make it easier to oversee all the necessary tasks you have to handle when owning an accommodation business.