What does letting involve?

Your letting agreement with the body corporate will include the exclusive opportunity to let lots within the scheme. An agreement could require you to advertise lots available for letting in your scheme, vet potential tenants for suitability, collect and account for rent, and operate an office and reception area during certain business hours.

In Queensland, under the Property Agents and Motor Dealers Act 2000, you need a resident letting agents licence.

You’ll find more information under Licensing requirements section of this site.

Letting is an important part of your income and should be approached professionally. Ideally, use a computerised system that integrates booking, receipting, maintenance costs, payments, commissions, reconciliation, and reporting. (Ask your accountant to recommend current software that is also compatible with their accounting system.)

Who do you need to make letting agreements with?

You negotiate a separate letting appointment with each lot owner, not the body corporate. Under Queensland legislation, you and the lot owner are required to complete and sign a standard appointment form.

The standardised government appointment form details the services you would provide for the owner, the fees you would charge for those services and the duration of the appointment.

As well as commissions on rent, you could earn income from cleaning, servicing and maintaining individual lots - and from hiring equipment or booking tours for guests.

If you are buying an established management rights business the existing letting appointments held are not automatically assigned to the purchaser. Unless the client/ lot owner has previously expressed their agreement to automatically re-assign the appointment of a letting agent, the purchaser will be required to re-negotiate a new letting appointment with each lot owner in order to manage lots in the letting pool. Any agreements made would be found in part 4.4 of the PAMD Form 20a.

However, as there have been circumstances where existing letting appointments have been assigned as part of the purchase process (prior to 2006), it is recommended you consult your lawyer for further information.

Not all owners will want you to manage the letting of their properties. Some might keep their unit or apartment for their private use. (These are called 'lockups'.) Other owners might use off-site letting agents, although this is rare as most lot owners are aware of the benefits of having their letting agent living onsite.