Need a Commercial Property Management service?
If you’re finding it hard to keep on top of your commercial property portfolio, then a property management service may be the solution.
Over recent years, commercial property service charges have been in the spotlight, making the role of a commercial property landlord more cumbersome for those keen to ensure they correctly comply with RICS standards. Only time will tell what the latest mandatory code of practice for RICS practitioners will look like as it is currently being drafted, but we do know that it will see many previous recommendations become mandatory. Managing service charges will need to be monitored more carefully, and this is when already busy property owners may be wise to consider a commercial property management service.
Fenn Wright has a team of experts dedicated to looking after commercial property for busy clients. We’ve asked Fenn Wright commercial property surveyor, Emma Hardwick, to help us understand what commercial property management (CPM) involves for those looking to engage this service.
Why should commercial property owners consider CPM?
“Primarily, CPM is beneficial for busy property owners who don’t have the time to chase for arrears or to ensure tenant covenant compliance. There are always going to be landlords that are abroad, busy or otherwise in need of support in managing their portfolios, and our service gives them the peace of mind that their properties are being well-looked after.
“CPM will ensure all administrative functions are completed, and that landlords are complying with all necessary legislation. We also offer landlords support when they are in a difficult negotiating position, acting a mediator with the tenant, and reporting to both parties.”
So, what can clients expect from a CPM service?
“CPM includes a number of services: rent collection, service charge management, inspections and overseeing of tenants to ensure they comply with lease terms and covenants. We also ensure tenants and landlords comply with any legislation, such as health and safety. Finally we are also able to provide advice when Tenants make applications to alter the property, or assign and sublet the existing lease. In this case it is pertinent owners consider the implications of granting consent on any of these applications, and Fenn Wright are able to assist providing guidance and overseeing any of these requests. For an additional but discounted fee, we will undertake rent reviews, lease renewal negotiations and re-lettings at the end of a lease.”
Can you give examples of how Fenn Wright’s CPM services have made a difference to a client?
“We helped to improve rent collection for one client whose property had mounting rent arrears of over £40,000. We set up, and continue to manage, a payment plan that is seeing this figure comfortably decrease on a monthly basis.
“Another good example is where we have assisted clients in introducing a formal service charge onto sites, which has allowed them to recover their expenses. In these cases, the previous service charge was operating where a nominal amount was being collected that was not covering the full amount of landlord expense. We have worked with the landlord to clearly lay out the new procedure to the tenants, and the landlords now have less outlay.”