The resident manager's responsibilities

Caretaking is a key role of management rights owners. Essentially, you take care of the common property, such as the swimming pool, gardens, lighting, driveways, and paths. The agreements offered by a body corporate could require you to operate according to a schedule that lists daily, weekly, and monthly tasks. Other tasks or responsibilities could be designated 'as required'.

Be clear about what the body corporate expects you to do for the agreed caretaking fee, and what fees you could expect for additional work or responsibilities.

Your agreement should also state that your caretaker fee would be increased at intervals to prevent inflation eroding your real return. The increase could be a set percentage, or linked to the CPI. Get advice from a lawyer and an accountant with management rights expertise before purchasing the business.

Please note that your management rights agreement with the body corporate is separate from the agreements you reach with individual owners to let, service, or maintain their lots.

You’ll find more information about individual agreements under the section on Letting.