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Management Letting right (MLR)

Need funding to purchase a Management Letting Right business? Our experienced management rights specialists will discuss the finance options available and help you choose the right facilities to suit your situation.

Management Letting right (MLR)
What is Management Letting Right (MLR)
Management Letting Rights (MLR) is a business opportunity that allows you to manage and operate residential or commercial properties, typically including apartment buildings, townhouse communities, resorts, and serviced apartments. As the MLR holder, you are responsible for tenant management, property upkeep, and the smooth operation of the complex. This business model allows you to generate income from both the body corporate salary and letting pool income.
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Benefits of Having a Management Letting Right
Acquiring Management Letting Right comes with several attractive benefits
Reliable Income Streams
Control Over Property Operations
Potential for Capital Growth
Work-Life Balance
Reliable Income Streams
The MLR business provides a stable cash flow. This income comes from two key components: • Body Corporate Salary: A fixed payment made by the Body Corporate for maintaining the property and common areas. • Letting Pool Income: The income generated from managing the rental properties within the complex.

Eligibility and Requirements

To operate a Management Letting Rights business in Queensland, you need to meet specific requirements:

Licensing and Accreditation

You must obtain a Resident Letting Agent Licence or Real Estate Licence to legally manage the property.

Compliance with Laws

You need to adhere to various regulations, including Body Corporate laws, tenancy regulations, and health and safety standards to ensure the proper management of the property.

Experience and Skills

Strong skills in property management, customer service, and administration are required to handle the responsibilities of tenant relations, property maintenance, and business operations efficiently.

Deposit

Depending on the nature of the property and the management structure, a deposit of 30% to 40% of the purchase price is generally required to secure financing for the MLR business.

How Much You Can Borrow

The amount you can borrow when financing an MLR business is influenced by several factors:

Deposit Requirement

For short-term letting (like holiday or serviced accommodation), lenders typically require a higher deposit of around 40%, as the income stream is more variable. For long-term letting (permanent rentals), the deposit requirement is usually between 30% and 35%.

Onsite Manager’s Unit

If you are purchasing a manager’s unit as part of an onsite MLR agreement, banks may finance up to 80% of the purchase price for the unit, as it is considered a residential property, separate from the business component.

Business Viability

Lenders will also evaluate the stability of the Body Corporate Salary and the income generated from the letting pool. A stable and reliable income stream can improve your chances of securing financing.

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What our customer says about us
Testimonial
What our customer says about us
I have been with Ivy for 10 years. Ivy always exceeds my expectation and makes me feel my needs are a priority. Her professionalism and knowledge are of an extremely high standard and the communication and efficiency throughout the whole process was above and beyond. More than happy with the service from Ivy and Smart Mortgage and would not hesitate to recommend their services to others.
Yin Zhu
Onsite Manager of Rosewood Heights
My family uses Smart Mortgage to assist with the purchase of our home, investment, properties and commercial lending. Ben Ou, the Manager Director and his team are very experience and have always made our loan processes easy. I would highly recommend Smart Mortgage to my friends and clients who require finance for their properties. I am confident that the Smart Mortgage’s team will look after the customer’s best interests.
Simon Au
RE/MAX Number 1 Sales Team
Having worked with Angela for over 10 years, she has always been very professional and always puts my needs and interests first. Her work ethic is excellent and I trust in her abilities to always provide me with honest advice to help me reach my financial goals. My husband and I have several home and commercial properties with Smart Mortgage and I would highly recommend them to anyone who is looking for a company who truly puts your interests first.
Anh Pham
Manager at Queensland Soy Factory
I have dealt with Smart Mortgage for many years. There have been a few properties I have bought and sold over this period. Angela Duong is the person I have dealt with for my home loans. I have known Angela for over 10 years and have always found her and the staff at Smart Mortgage to provide outstanding services. Buying and selling houses are some of the most stressful things a person can go through in life. Knowing that Smart Mortgage are very professional and committed to the complete process from start to finish is a great relief.
Anne Poulton
Property Buyer
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