Monday, 13 April 2015

Property Health Check - Rent Level



The health of a property is determined by many factors, from structural status of the building to financial figures like yield or profit before interest. Even the financing structure can be a subject for a health check.
However all these factors influence some key measurements or key performance indicators (KPI) that can be used as a starting point for a health check of a property.


The first and most obvious KPI every investor is looking at without any consultancy is the Rent Level. The biggest problem most international property owners will run into is access to relevant benchmark data. Without local knowledge the exercise is futile and the investor has to trust in the performance of the property manager. Most investors are reluctant to spend money on top of the property management fees so we have developed quick and low cost assessment processes to identify any possible problem areas in a property.

Rent level benchmark


The rent level benchmark compares the actual contract rent to the rent table and market rent detailed down to the size categories and prevailing standard of the majority of the units. In a second step the contract rent is compared to the actual rent payments. Major shortcomings can then be investigated and tracked down to the underlying problem, e.g. problems in the building fabric, tenant mix or plain bad management, to mention just a few possibilities.


Rent level benchmark service


In order to perform the rent level benchmark service the following information is required:

Building:
Address and photo

Year of construction

Type of bathroom facilities

Type of heating

Recent modernizations and resulting rent increases
Tenants:
Rent list with apartment sizes, contract rent amounts and rent components (names not needed)

Actual rental payments
Property management
Introduction and contact for questions.
This can improve the quality of the resulting report but is not mandatory if you don’t feel comfortable with it at this point.

This is what you can expect from this service:
An assessment of the rent level of your property compared to other comparable properties and recommendations for the next steps if necessary. The report will be provided in English as a pdf-file. This service does not include site inspections.


Pricing


The fee for this service is 49.00 € including VAT. The payment is due with the order of the service. We give a 30 day money back guarantee, should you not be satisfied with the service provided.

To contact us about this offer please use our website feedback.


Share/Bookmark
Post a Comment