Licence types for Management Rights
You have two choices when it comes to getting a Licence to be able to operate a managed complex in Queensland. Firstly the RLA or Resident Letting Agent’s Licence. Secondly, a Full Real Estate Agent’s Licence. Let’s compare the two and see the differences.
Resident Letting Agents Licence
Until the introduction of the Property Occupations Act in 2014 the RLA Licence only allowed you to hold this Licence if you were to reside in the complex you were to manage.
The new Act changed this requirement and you can now reside offsite, but only if the Body Corporate allows it. A good example of this is where you operate a permanent residential style Management Rights business that doesn’t require someone to deal with the public 24/7.
The main restriction of this Licence is that you are only allowed to rent units within your complex, and you are further restricted by not being able to make sales in your complex.
Making sales is fast becoming a real source of income, as roughly 10% of units in a complex will change hands in a 12 month period, and usually to someone who has stayed with you previously.
Full Real Estate Agents Licence
Many Onsite Managers are opting to obtain a Full Real Estate Agent’s Licence as it offers more opportunities to earn a supplementary income other than the maintenance and letting fees.
Most Managers don’t realise they are in the box seat when it comes to making sales within their complex, as they already have a database of people who have stayed, and simply marketing the availability of units for sale can see a significant income stream develop quickly.
Costs RLA v Real Estate Licence
The costs to apply to the Office of Fair Trading for both Licences are the same, but the Full Licence offers a wider scope for extra income.
Another interesting point to consider is that most managed complexes are run as a family business, usually husband and wife. If both are active in the business, both will need an RLA Licence.
On the other hand, if one party holds a Full Real Estate Licence, the other only needs to hold a Real Estate Certificate, which is cheaper to maintain. This is the same hierarchy a traditional Real Estate Office would have.
For more information contact Complete Property Training on phone 1300 281 289 or www.completepropertytraining.com.au