Management Options
Several management options are available. It is possible to manage your own site if you have skills in that area. If you decide to work with a specialist management company, there are several types of arrangements that might be appropriate for the project. Depending on what type of arrangement you come decide on, you will need to have the right type of legal arrangements. The table below outlines some of the possible arrangements to consider.
| Type of arrangement |
Fee for Service |
Fee for Service with risk sharing |
Affordable Housing Growth Program |
Joint Venture |
Key roles |
The owner pays the manager a standard fee to provide management services – possibly both tenancy and property management services. |
Normal Fee for Service plus the manager agrees to take on certain project risks – eg. vacancy risk – in exchange for a higher fee or other form of compensation.
|
Where the owner’s interest is to grow affordable housing, an arrangement can be reached whereby the manager reinvests all surpluses in affordable housing for a certain target group or in a specific local area.
|
Joint Venture arrangements may be reached whereby both parties make contributions to the upfront costs and in exchange ownership and the proceeds of the project are shared.
|
Legal arrangements |
Standard Agency Management Plus Affordable Housing Management Annexure
Another option is for the owner to headlease the property to the Manager. The Manager would then sublease to tenants.
|
Standard Agency Management Plus Affordable Housing Management Annexure
Another option is for the owner to headlease the property to the Manager. The Manager would then sublease to tenants.
|
Specialised Management Agreement Plus headlease over the property |
Specialised Deed of Agreement |
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Last modified: Sunday, 5 February 2012