Unheralded potential for maximising MR income

Published: 24 March 2008.

Contributed by Terry McMiles of Terry McMiles

The subheading for this article should perhaps be 'Are you a Bunnings junkie?'
Because, if you are contemplating the purchase of Management Rights and you are a competent handyman, or even better have a trade background, you may have a distinct advantage over some people in the Industry and many other buyers.

When I have a look at some of the Permanent Complexes that I currently have for sale, common re-occurring facts in the low to medium price range (say from minimum entry point up to a million dollars) are:

Many Complexes only need one person to look after them.
It is often around just 20 hours per week needed to fulfill caretaking obligations
Complex age is often 10 to 20 years which is around the right time for many units or townhouses to be ready for minor maintenance upgrades, painting etc.
The same is true in relation to “common areas”.
Many managers call in outside tradespeople for anything more than a cistern adjustment or change of a tap washer.

As an onsite Manager you are in the ideal position to recommend to both the Body Corporate and your Investor owners that certain maintenance should be carried out and offer your services to do it.
You may be replacing timber decking, painting rooms on a tenant vacating, upgrading a kitchen, landscaping a rear garden area, adding a paved courtyard, etc. There are lots of improvements that will add value to an investors property and increase rental returns.

And you, with the help of Bunnings and Ikea, can take advantage of this additional source of income.

Ten hours a week can earn you $350, 15 hours $525 and 20 hours a whopping extra $700 per week. No travel time, you are right there on the spot.

The work is there if you look for it. 20 hours a week in a complex of 40 relates to just 16 hours per year for each owner. So if you have the skills, don’t just look at what the current earnings are from repairs and maintenance, take a look at what potential there is if you actively promote your services to both Investors and on site owners.

I think you will be pleasantly surprised.