General

The resident manager runs a business that is commonly known as “management rights”. Terms that are defined under the Body Corporate and Community Management Act, which apply to a resident manager are

“Management Rights” defined in Schedule 6 of the Body Corporate and Community Management Act to mean

The letting agent business for the Scheme (including the letting authorization), and

The business conducted by the letting agent under a service contract for 

the scheme, and

The letting agent’s interest in a Scheme Lot used in conducting the

business, and

Any right of the letting agent to use and occupy part of the common property for the business.

• “Letting agent” – is a person authorized by the body corporate to conduct a letting agent business for the lots in the community titles scheme. (Section 16)
• “service contractor” – is a person (other than an employee) who provides services for the lots or common property under a contract with the body corporate of one year or longer (Section 15)

Management Rights Businesses can also take several forms: Sole trader/partnership; company or corporate entity. The degree of professionalism and efficiency may be the same, but the size of the business and resources may vary enormously. This will sometimes have a bearing on the performance and duration of contracts.

The management rights business has two aspects to it, both of which come from contractual privileges, rights and responsibilities with the body corporate. The contract form must comply with strict requirements, for example see Chapter 6 Parts 1 and 2 Section 114  of the Standard Module.

The body corporate enters into a contract with the resident manager to either perform or to supervise the on site caretaking of the common property. Caretaking usually involves janitorial style services. For these services the body corporate will pay the resident manager remuneration.

Secondly, the body corporate gives the resident manager the right to run an on-site letting business for the owners that wish to take advantage of this service.

These duties are entirely different to the functions performed by a rare few Strata Managers. You are lucky to find Strata Management  that provide administration services for the body corporate