Management Rights: The Business of Property Ownership

management rights

The business of management rights has been active since the 1970s. Essentially, management rights refer to legal ownership of a lot, particularly a portion of a property such as a building or a complex. In general, there are three categories of people who can purchase management rights:

  • Owner occupiers or the people who live in the property on a permanent basis
  • Lock-ups or those who live occasionally in the property they purchased
  • Investors or the people looking to let out their portion to tenants

While these three people own a portion of the building, high-rise, villa, and bungalow or complex they purchased, there is also another portion termed as common property that requires maintenance through the contributions of the owners.

management rights

With management rights from, there will be an on-site manager to take care of the common property and provide service to the investors hoping to rent out their property.

Permanent Management Rights

In this case, the building is occupied by the owners or could be rented out to tenants for a period of 6 months. The business involves finding reliable tenants, collecting rents from them, maintaining the common property areas and forging relations between the owners and tenants.

Holiday Management Rights

Holiday management rights refer to short-term letting of the building, which is being used as a resort or a hotel. This means that the complex must be promoted as a tourist attraction, which means the manager must provide a high level of service.

Understanding their Difference

The differences between the two types of management rights are as follows:

  • Rental income is higher in holiday rights, but steadier in permanent one
  • Front desk requirement, marketing skills and tenant management needs are greater in holiday rights than in the permanent one
  • Holiday rights are at the mercy of the market, but permanent rights are not as fluctuating
  • Getting caught in complex politics in case of permanent rights is always a risk, which is totally eliminated in the case of holiday rights

The kind of a manager you choose to be rests on your skills and earning desires. This will determine whether your business will thrive in a competitive environment.