Is Asset Management doing it for you?

It is the New Year and time for new resolutions and positive planning decisions for this volatile market. We are prompted to ask whether you have your properties managed by a commercial property management company such as Raine & Horne Commercial and if so, is it being done well?

Late last year, we were asked to manage a number of properties that were previously, and might I add poorly, managed by owners or other agencies. In a number of cases, rent reviews were missed, delinquent tenants were not managed well and the Landlords were losing money.

We happily report that we have also seen an increase in referrals from Solicitors and Accountants and this has been a win for all parties including the Tenants. In most of these cases, the Landlords were interstate or overseas.

It is reasonable to expect that Asset Management should be saving you time, maximising your net return, maximising your capital growth and protecting you from potential litigation or minor issues. These are the main reasons Landlords are contracting our services. Also, we are seeing an uptake in our services as Landlords grow weary of trying to stay current with legislative changes and especially with the implementation of Energy Efficiency Standards, Fire Regulations, etc.

With the economy still under financial strain, we happily report that we continue to maintain cash flow for our clients and keep the properties tenanted. If there is a vacancy, we are very motivated to lease the property as reduced cash flow to the Landlord means reduced fees to us.

Asset Management cannot prevent all Tenants from defaulting on leases but it goes a long way to minimising the exposure to the various time consuming areas of rent and charges collection, repairs and maintenance, and debt recovery whilst endeavouring to improve Tenant mix and capital value. Even if your properties are currently being managed, you should consider if you are getting ‘a value for money service’. If not, then now is the time to act. Please feel free to contact Daryl Gallagher-Collins, Associate Director of Raine & Horne Commercial on 3216 6666.