Thursday, 27 December 2007

Property Performance Improvement

Background

Germany and especially Berlin were the European Property Hotspots of the last 2 years with many private investors buying properties. Some investments were made under time pressure or without thorough knowledge of the contractual situation in Germany. This has led to a need for services to resolve the issues arising out of these investment decisions.

Not all properties are performing as was promised in the exposé. There is a wide variety of reasons why this could be the case.
Some examples:

* Incorrect information at the purchase (most frequent occurrence);

* Pressure pre-sale renting with incentives and collapsing results a short period after sale;

* Non-performing property management.

It will be part of the review to determine the reason or most likely combination of reasons for the failure of the property investment to deliver the planned results.


Our Service

We apply various approaches to get to the bottom of the issues of non-performance. Where applicable we check for claim opportunities against the vendor with a forensic approach.

At the beginning of a Performance Improvement Review stands a Property Health Check. We apply our proven check lists and deliver an Opportunities Report that covers areas like rent level, cost management, vacancy management, maintenance etc.. Based on the opportunities and their respective value potential on one side and the estimated time to achieve first results, "Quick Wins", we then agree an action plan to achieve

Property Performance Improvement.


To avoid the purchase of non-performing properties we recommend a structured Pre-Acquisition process.


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