The New Year resolution any landlord can get behind – getting your paperwork and finances in check.
Whether you have one property or several, keeping on top of the administration that goes in to your assets can be a real headache. From the right insurance to dealing with rents and deposits, keeping on top of the paperwork is often a full-time job.
Remember most property portfolios never start big. Even the most successful landlords and asset managers probably started out with just one, easy-to-manage property. Over time, as a portfolio grows, so too does the need for a more efficient system, which has the capacity to outperform basic spreadsheets and account management packages.
Perils of forecasting
As any good property manager will know, every lease comprises far more than just the term and rent. Occupiers too are increasingly concerned about the total cost of their lease. Without a clear understanding of obligations towards a service charge, insurances, rates and utility bills, it’s hard to understand the full cost of a lease.
Now, with the right tools: occupiers, agents, asset managers and landlords can use that information to forecast not just the next few weeks, months or even years.
A wealth of in-depth understanding
To be a successful commercial landlord you need to be able to take a 360-degree view of your assets, costs, income and liabilities.
Taking this approach alongside being able to instantly analyse the factors below will ensure you are keeping a tight reign on costs and liabilities.
Ask yourself this question. Do you currently have a system in place to instantly check/log?
- Detail rents, rateable values, insurance costs for each property in a portfolio.
- Highlight and diarise upcoming rent reviews.
- Keep track of lease expiration dates.
- Log all tenant/ landlord interactions and actions resulting from those interactions.
- Record all landlord details.
- Log vacant details.
- Store historical leases.
- Log service providers for each property.
- Store photographs of each property within a portfolio.
If you don’t have a comprehensive system in place and are still using excel spreadsheets it might make sense to research the market and see what’s out there. On that note, around ten years ago, I was introduced to JLL, an asset management company which looks after a major fund of industrial estates, whose assets amount to several billions.
Being an asset manager rather than a landlord, the company required greater detail surrounding tenant interactions and was struggling to achieve this. I had a lightbulb moment and have spent the last decade developing a specific tool and more in-depth asset management software package to help landlords records tenant surveys, record rent review information etc and make it an all-in-one package.
As your property portfolio continues to grow why not get your business off to the best possible start this new year and take advantage of a free demonstration of WebTerrier. And it would be great to get feedback from any JustDoProperty commercial landlords and discuss how the software could potentially help improve profitability.
Have a great Xmas and Happy New Year.