Top 10 mistakes to avoid as a new MLR manager

By Grantlee Kieza OAM, Industry Reporter

Management and letting rights can provide wonderful lifestyle and business opportunities, but new operators must avoid some critical mistakes. Here’s Resort News' top 10...

1. Do not forget this is a relationship business

Lyn Ischenko, from Mackay’s ocean front Dolphin Heads Resort, emphasises that building strong relationships with the body corporate and owners is crucial.

“You really need to be a people person in this business. It goes a long way,” she says.

“In a building like this, we have, guests, 82 owners and a committee of seven.

“It’s a big job to try to keep everyone happy.”

Chris Podmore, from the Australian Resident Accommodation Managers Association (ARAMA), agrees.

“Management rights is a relationship business,” he says. “It’s a hugely important part of the industry – maybe the most important.”

2. Do not think you’re on holiday, too

Wayne Broad, who manages the picturesque Pandanus Palms Holiday Resort at Point

Lookout on North Stradbroke Island, warns new operators not to confuse management rights with a holiday.

“You have to work hard at the business to make it a success and ensure you are on good terms with the owners and the body corporate from the outset,” Wayne says.

3. Do not work in isolation

Graham and Kirsty Hislop of Markham Court Apartments stress the importance of being ARAMA members, praising the advice and encouragement they receive from the association and its community.

“Managers should surround themselves with knowledgeable people — other managers and reliable tradespeople,” Kirsty says.

ARAMA CEO Trevor Rawnsley highlights the value of the Management Rights Industry Training Program (MRITP).

“The program connects you with industry specialists,” he explains. “Skipping the MRITP is a gamble. Completing it gives you a solid foundation.”

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4. Do not get cold feet

Irene and Ian Manson, who manage the Casa Bella residential complex on the Gold Coast, have nearly 40 years of experience. Their advice is simple: “Just do it.”

“Be prepared for the first two months to feel overwhelming,” Irene says. “By the third month, you’ll think, ‘Why didn’t we do this sooner?’ It’s tough at first, but once you get the hang of it, you won’t look back.”

5. Do not use the family accountant

Mr Rawnsley warns against relying on family accountants or lawyers during due diligence.

“Loyalty is great, but use specialists familiar with the industry,” he advises.

He stresses the importance of operational due diligence.

“Don’t just look at the manager’s unit or gardens. Ensure the figures and legalities stack up, and dig into the business details.”

6. Do not ignore expert advice

“Talk to as many experts as possible,” Mr Rawnsley says.

Industry veterans like Mike O’Farrell, Danny Little, and Barry Turner often know the history of buildings under consideration.

“Thoroughly check the last three years of meeting minutes to avoid costly surprises,” he adds.

7. Do not rob yourself by being a cheapskate

Successful MLR operators use top-tier digital technology.

“Don’t scrimp on your public image,” Mr Rawnsley says. “Invest in quality property photos, building management software like MYBOS, and smart uniforms. Professionalism pays off.”

8. Do not leave it to the last minute to get your real estate licence

Mr Rawnsley advises starting the application process early.

“Last year, it took 15 weeks to approve licences; now it’s six to eight weeks,” he says. “Without a licence, you can’t open a trust account. Don’t risk delaying settlement.”

9. Do not focus solely on profit and loss statements

While financials are important, Mr Rawnsley emphasises that success in MLR hinges on relationships.

“Management rights is a service industry. Gaining and retaining units for your letting pool is key to long-term success.”

10. Do not become downhearted

Bruce and Jill Christie, from Surfers Hawaiian Holiday Apartments in Surfers Paradise, advise perseverance.

“When we started, the committee was hostile,” Jill recalls. “We worked hard to earn their trust and eventually turned their attitude around.”