Real Estate Investment, Pre Acquisition Phase - Information Gathering (Part2)

In Part 1 of Real Estate Investment, Pre Acquisition Phase, Information Gathering I have shown why this is one of the most difficult phases, with far reaching impact on the entire outcome of a Property Investment. Based on your Investment Philosophy, the Property Market Research and the findings from your project related information gathering you make your first adjustments in the ranking of your pre-selected property. This second part of the article series will help to further determine which property would be the right choice.

I will provide some sources of generally available information about properties and the area they are located, e.g. rent tables. They are used to determine if the property is at its prime rent level or even at risk of being over-rented in the current property market. Is there a possible upside on the income side or has the property been set up for a sale by incentivized renting to produce high rental income? Berlin is the local market with the highest relevance in Germany this article will focus on Berlin. In other regions and cities in Germany there is similar information available. You will see [Tool] in the text. This indicates tools that will be provided in a more detailed e-book to be published early 2008.

Rent Information

Probably the most useful source of information on residential rents is the official rent table (“Mietspiegel”, For more information on translations and abbreviations common in the German property market also refer to “German English Property Glossary). For commercial rents the chamber of commerce will give guidelines but you have to keep in mind that the chamber of commerce is business minded which in this case will be their paying members, the tenants.

In this article I will focus on the residential market as the more regulated sector. The rent table is important in two ways: It gives you a first indication of the rent level of your property compared to properties of the same age and standard in comparable areas. At the same time it marks the legal limits of rent raises in the near future. The rent table is re-issued every two years based on micro census and statistics and as a result of a political process involving tenants’ and owners’ representation. It constitutes part of the legal framework for rent raises and their limitations. It applies to existing contracts only. For new rentals you can ask whatever the market will accept.

An obvious public source available information are “for rent” or “to let” ads. There are several online portals easily available. Keeping in mind that the rents quoted there are sometimes a wish list rather than reality it is important to look up at least 10 similar offers to develop an understanding for the market tendencies. These figures will most likely be higher than the rent table figures.

Why is this relevant to my intended purchase?

The information gleaned from the analysis of the rent table and ads will let you determine the

• likelihood of improvements on the rental income (upside) or;

• risk of possible yield erosion if the rent is currently pushed to the limit or beyond.

The evaluation of upsides and risks will enable you to review your Key Investment Parameters [Tool] you have set at the beginning of the Information Gathering process (see Part 1 of this article).

Operational Cost Information

In principle there are two basic types of rental contracts:

• All inclusive contracts with heating and ancillary cost included in the rent and fully born by the owner (“Brutto-Warm-Mietvertrag”)

• Net rent plus ancillary cost and heating advance payments with balance at the end of the year (“Nettomiete mit Nebenkostenvorschüssen”)

There are variations with regard to the heating (coal heating, central heating per apartment etc.) which will need to be considered but are not relevant to the description of the general process at this point. For both contract types you need reliable information about the actual costs for the property. In the case of the inclusive contract it is obvious as you will have to cover the costs from the incoming rent. In the case of the net plus contract you might be forced to ask the tenants for high bulk payments if the advances are not calculated high enough. If your rent is already relatively high this might drive your tenants out and produce vacancy and renting costs at the beginning of the investment.

For cross reference on the operational cost you can again use the rent table which provides crude benchmarks for ancillary and heating cost. Also reference to experienced property managers or property consultants can give some idea about the appropriate cost level for this cost.

Next steps

The operational cost is one of the key areas for the Commercial Due Diligence for any property you want to take to the next phase. Another main topic is entries in the deeds register:

• Is the property located in an urban redevelopment area?
• Is it currently subsidized or was it in the past?
• Are the bank securities higher than the asking price?

The next part of this article series will provide a list of questions to be answered by the Commercial Due Diligence and how all the findings can be best used in negotiations and Smart Purchase Contracts.

Uwe Falkenberg, the author is a Berliner and active in the German property market for more than 25 years. Experienced as project manager, developer and head of the German Business for a UK based property consultancy he now owns and operates Berlin Portfolio Ltd His international background and local expertise is an ideal combination for an international investor.
For Property Search we recommend Properties in Berlin

Real Estate Investment, Pre Acquisition Phase - Information Gathering (Part2)

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.

Property Performance Improvement

Real Estate Investment, Pre Acquisition Phase

The first article of the series is about to be published:

Information Gathering (Part1)

The Pre-Acquisition Phase in a Real Estate Investment is most likely the most difficult phase with far reaching impact on the entire outcome of a Property Investment. Your Investment Philosophy is set, the Property Market Research and the pre-selection are done. There is not all the money in the world to be paid on the elimination process and the vendors and agents will push for a decision because other investors are interested. Who knows, they might even exist and snatch the best property you have seen in years from under your nose. So there is the other factor next to money: Time - or more precisely speed. I will show which processes will need to be applied to make an informed judgement.

To receive the article and not miss the following parts we recommend to register here:
Real Estate Investment Research.

Real Estate Investment, Pre Acquisition Phase

Property Market in Germany - Record Year 2007

The German Property Market will see a result of for 44 billion € sales volume in 2007. A historic record high for Germany. According to Financial Times Deutschland (11.12.07) the volume will be an increase by about 20% in comparison to the same period last year.
International investors are still very active in the German property market but German investors are returning as well. However the result was mainly achieved before the US property market crisis but a real slow as was expected has not occurred. The financing process has tended to be longer due to funding issues in the financial markets due to the US subprime problems. This has effectively slowed down the purchase process and made financing more expensive.
This price increase in financing obviously has caused some re-negotiations of previously made offers. An increasing reluctance of owners to sell right now can be observed. When € 5 million were discussed and now € 4.5 million are discussed, an owner tends to want to wait until the price is back to 5 million. The new year should bring some interesting developments, especially for investors.

Property Market in Germany - Record Year 2007

Rising residential rents in Germany

According to official statistics the number of new building permits has declined dramatically in 2007. In Bavaria e.g. by 40%. This is related to reduction in tax incentives for newly built property and modernisation on properties.
Property market experts already see significant rises in rents for residential real estate, in some regions by 5% compared to the previous year. Over the next years a 10% rise is deemed to be likely.

Commentary:
The positive outlook for investors is self evident. However the raise of the general rent level does not mean automatic increase in income. The opportunities and best approach need to be assessed and appropriately managed to receive the most drive on the value of the property. An effective Asset Management Strategy is key to get the most benefit out of this opportunity.

Rising residential rents in Germany

Property as subsidised Pension Plan in Germany adopted by the cabinet

The cabinet of the German Federal Government has adopted a draft which allows up to 75% of a subsidised pension scheme to be used for the purchase of a property for own use.

With Germany having a high quota of rented accommodation, in Berlin ca. 85%, this option will open a vast market as exit strategy for real estate investors. Details, especially taxation are still to be finalised.

Property as subsidised Pension Plan in Germany adopted by the cabinet

Property Tools and Checklists

A new series of articles on The Do and The Don't of Property Investment in Germany is coming to the real estate market after years of market research and experience.
The articles will provide nuggets of tips and information for all phases of the property cycle:

• Investment Philosophy - Setting up the right Search Profile;
• Market Research - Finding Property;
  
• Pre Acquisition - Information gathering and evaluation;
• Purchase Process - Clever contracts;
• Financing - Providing the right Information to get the Best Deal;
• Taking Possession - Making sure all information is handed over;
• Managing the Investment - Finding the right Service Providers;
• Driving Value - Setting a Successful Asset Strategy;
• Best Results - Preparing a Property for the Sale.

There will also be Specials on items like Subsidised Property in Berlin. More comprehensive information will be available as an E-Book beginning of 2008.

So stay tuned to this blog: http://germanproperties.blogspot.com/ for more information about the upcoming article series and the E-Book.

Yours

Uwe Falkenberg





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Property Tools and Checklists

Foreign buyers attracted to Berlin real estate, Housing, Germany, Expatica

Foreign buyers attracted to Berlin real estate, Housing, Germany, Expatica
With some of the lowest real estate prices in Europe, Berlin is an attractive option for foreign investors interested in buying property. Maren Martell looks at the American and British buyers wanting a piece of the German capital.

Foreign buyers attracted to Berlin real estate, Housing, Germany, Expatica

German Real Estate Terminology and Abbriviations

A forum for English translations of German real estate terminology and abbreviations as used in ads. Is intended to grow through readers contribution. Complete list is downloadable after registration on the website associated with this blog.

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German Real Estate Terminology and Abbriviations

Berlin Real Estate Market Sees Ongoing Influx of International Investors

Stenham has announced further investment in Residential Property Portfolio in Berlin. The Press release confirms their confidence in the market and demonstrates that the Berlin Real Estate Market is for both "Income Investors" and "Capital Investors" making biggest part of their profit after capital appreciation.

Stenham Press Release

Berlin Real Estate Market Sees Ongoing Influx of International Investors

Berlin Real Estate Purchase Cost

One of the most asked questions by investors new to Berlin is regarding the typical cost involved in making a real estate investment.

The cost depends on the price of the property and the cost tables for the notary public and the land register. They are digressive, in other words, the higher the price, the lower the percentage of the cost.

For a property with a purchase price of € 1 million the cost would be roughly:

Notary Public	for the contract	6,965
	For an escrow account if required (based on $ 500k)	3,020
Land Register		4,280
Property Sales Tax	4.5% in Berlin
	(3.5% rest of Germany)	45,000
Agent Commission	Between 4 and 6 % plus VAT,
	(assume 4%)	47,600
	Total	106,865

For a property with a purchase price of € 2 million the cost would be roughly:

Notary Public	for the contract	13,660
	For an escrow account if required (based on € 1 mill.)	5,995
Land Register		8,410
Property Sales Tax	4.5% in Berlin
	(3.5% rest of Germany)	90,000
Agent Commission	Between 4 and 6 % plus VAT,
	(assume 4%)	95,200
	Total	213,265

For the quoted size of investment as a rule of thumb it is safe to use 10 % purchase cost for an initial calculation, with higher values reducing the percentage slightly.

These figures also identify the items where savings can be achieved:

1. If it is a straight forward purchase an escrow account should be avoided as the saving can be quite substantial.
2. Traditionally in Berlin the commission for the property agent is paid by the buyer. For a long time 6% plus VAT was custom and practise. With the recent influx of international investors these margins have come under pressure, especially with the agents not assuming any responsibility for the information provided by them.

The cost of financing will depend on many factors like the amount of equity used etc.. There will be cost for Technical Due Diligence and valuation, "handling fee" between 0.25 and 1 % of the loan charged by the bank and entry of the loan into the deeds register. With the right approach and experience there is also a money saving way of doing this.

Naturally there are many more aspects to be considered before making a purchase: Review of the rental contracts, maintenance, ancillary cost to mention only a few of them. Language can be quite an obstacle because an investor can not expect every property manager or care taker to speak English.

Businesses like Berlin Portfolio Ltd. and their network of Real Estate Professionals from Notaries to Tax Consultants and Finance Brokers are specialised in assisting international investors in their investment decisions, providing a "home base" for their activities in Berlin -- before and after the purchase.

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Berlin Real Estate Purchase Cost

German Property Terminology and Abbriviations - Glossary and English Translation

If you are at Rome live in the Roman style; if you are elsewhere live as they live elsewhere. [Lat., Si fueris Romae, Romano vivito more; Si fueris alibi, vivito sicut ibi.]
Author: Saint Ambrose

It is our policy that we provide information as much as we can in the English language. However our clients will obtain information and property offers from other sources. To help them to understand the main parts of that information we have provided a German-English Property Glossary which also includes abbreviations commonly used in German property ads and rental ads.

The following list is a short example, the full list has over 100 items. Getting the free German English Property Glossary will be a useful action for those that have already invested in Germany property and even more for those planning to make this exciting move. You will find the access to the complete German English Property Glossary on our website. All you need is register to get your copy by e-mail. Also staying registered will give you the benefit of getting updates.

Abbrev.	German term	English term
AB	Altbau	Period property
	Aufzug	Lift
Kfz	Autostellplatz	Car parking space
Bd	Bad	Bathroom
Bk	Balkon	Balcony
Bj.	Baujahr	Year of construction
BeK	Betriebskosten	Operating cost
BEZ	Bezirk	Borough, City District
	Brutto-Kaltmiete	Gross Rent without heating expenses
DG	Dachgeschoss	Penthouse apartment

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German Property Terminology and Abbriviations - Glossary and English Translation

Real Estate Investment in Berlin

Executive Summary
Berlin has been the Europe's Real Estate Hotspot for over two years now. Is it not too late to jump on the train? No, it is not too late! Attractive real estate, even at entry level is still coming into the market, with positive cash flow and a realistic expectation for capital appreciation. Careful research is required to make sure the information provided is met by the reality after the purchase. Local support is recommended.

Berlin is a Real Estate Market for professionals and starters. It offers capital growth for investors with plenty of income who want to make a good profit long term as well as novice investors who are relying on their investment to generate immediate income. Both types of investments are available in Berlin and many provide both.


Economic developments
A strong development in the global economy and a robust growth in the EU are indicative of the current macro environment and are the driving forces behind a boom situation that after years of downturn finally has reached Germany's economy. For the third quarter of 2007 the German economy experienced its strongest upturn since the re-unification boom in the early 90's and for the first time in years the growth was led by consumer spending. Despite the "sub prime" irritations in the US financial markets the OECD Outlook for economic growth in Germany for 2007 is 2.6% and for 2008 2.0%.

German Property Market
The German Property Market is Europe's biggest with record transactions in 2006. Figures for the first half of 2007 show no decrease in volume. Except for the mega portfolio deals the German market has seen in that period the focus points were Berlin followed by Dresden and Leipzig.

Germany is still currently one of the few major economies where an investor can expect a positive cash flow from property investments. Despite the high demand prices are still low in comparison to international markets, even the Eastern European ones. The potential for property appreciation is strong.

The rent level is still low and trailing behind the economic development. So buying now offers an upside on the cash flow as a good management can capitalise on the catch-up to follow.

Berlin Property Market
The Berlin property market still shows traces of the rent regulations in ex East Berlin because of the political system and ex West Berlin because of the highly subsidised status of the rental market. The rent level is relatively low and trailing behind the economic development. So buying now offers an upside on the cash flow as a good management can capitalise on the catch-up to follow.

Why now?
Global property players have been in the market for over two years now and have tied a great deal of their equity. This is where the chance lies for new arrivals in the market. They are not absorbing new opportunities coming to the market. Good investment opportunities require speedy decisions and ready available equity. These factors create a competitive advantage in the market. Equity is the easy part for a new arrival in the market but speedy decisions require market information and knowledge if they are not to turn out as risky or maybe totally wrong.
There is only one solution to this situation - local partners, already present in the market with access to off market properties and know-how in the execution of their purchase, development and operation.

The best strategy
The right strategy for the way in and the way out again is vital to any successful investment.
Properties need to be selected to match the investment period planned. If upgrading is planned it will take longer to get the full benefit of increased rents with increased property value than just adjusting the rent on a previously poorly managed property.

The exit strategy has to be clear and the business plan developed accordingly. Whether the sale as condominiums or as a block of rented apartments, market knowledge of the respective markets is vital for the right purchase decision and the business plan. With the right partners at the starting point a successful and profitable exit after 3 to 7 years, depending on the strategy, is easily achievable.

For investors new to the market the purchase of a rented apartment with secured cash flow is the best way to get to know the players and the procedures in a new investment environment. Find examples here: Rented apartments in Berlin.

For more detailed information please visit the website of Berlin Portfolio Ltd. or contact the author by clicking on this link:E-Mail



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Real Estate Investment in Berlin

London Stock Exchange: Rental market in Germany is "very big"

An expert has suggested that there is a large market for private rented property in Germany. More Information on London Stock Exchange

London Stock Exchange: Rental market in Germany is "very big"

Performance Measurement in Real Estate Operation

Measuring the performance of single properties, portfolios or service providers like property managers are vital to any sound management decision: "What you measure is what you get!"

Depending on the depth and size of the organisation the measurement can take place at various levels and can then be aggregated upwards. From property to location to portfolio etc..
It is also important to measure the performance of service providers influencing the performance of the property: Asset Manager, Property Manager, Facility Manager or the own internal organisational units.

In order to establish measurements as management tools the "philosophy" of the property or the portfolio needs to be defined and broken down into targets to be fulfilled to meet the philosophy. What does that mean? Ambitious but somewhat achievable targets for rent and value development have to be set and determined which are the immediate factors determining their development. This process is best done by looking at historic data, available data from comparable (good performing) properties and/or property benchmarks. The measurement then includes the targets against their set values and the defined factors like tenant turnover, payment backlog etc. It is of great importance that these factors reflect not only what has happened, like already occurred payment backlog but also warning indicators like tenant turnover or late payments.

All of these performance indicators are then mapped against their targets in a graph which will show the decision maker at one glance where the performance is as expected or better and where attention is required. These graphs are produce at every level where measurement takes place and can be aggregated upwards: A graph for each property, each location, each manager or the entire portfolio.

When applied in the right manner, this can be one of the most powerful tools for managing a property portfolio.



The performance indicators are based on the Balanced Score Card philosophy. Decisions based purely on financial data can only be reactive whereas the consideration of average contract durations, tenant turnover, payment moral etc., are early warning signs for developments and provide a guideline for areas to focus on.


For more detailed information please also visit the website of Berlin Portfolio Ltd or contact the author by clicking on this link: E-Mail





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Performance Measurement in Real Estate Operation

Berlin named as City of the Year

Berlin named as City of the Year
by Frank McDonald

Berlin has beaten Amsterdam and Barcelona to win the Academy of Urbanism's European City of the Year award, for its outstanding achievement in remaking a city that was divided for nearly 50 years. Frank McDonald , Environment Editor, reports.

The Great Town award went to Kilkenny city, with St Andrews in Scotland and Winchester in England as runners-up, while the Great Neighbourhood award was won by Grainger Town in Newcastle, ahead of London's Soho and Temple Bar in Dublin.

The academy's other two Urbanism Awards crowned Buchanan Street in Glasgow as the Great Street, defeating both O'Connell Street in Dublin and London's Regent Street, and Sheffield's Peace and Winter Gardens as the Great Place, ahead of Quayside in Newcastle/ Gateshead and London's South Bank.

The awards were announced yesterday at an Oscars-style presentation in the Dorchester Hotel, London. Academy chairman John Thompson said it was "fantastic to be able to honour Berlin because it's still a real city of opportunity, a city that's being reborn yet again".

It was "great to have an Irish town coming through in this year's awards, especially Kilkenny which is coming to terms with economic growth without losing its wonderful character and humour", he said, adding that the awards for Newcastle, Glasgow and Sheffield were also well-deserved.

Adjudicators from the academy visited every one of the 15 nominees for the awards.

In the case of Berlin, they noted that it was now rediscovering and reinventing its unique sense of place, and aiming to achieve social sustainability through innovative urban renewal.

"The remaking of a city that was physically and politically divided for nearly 50 years, and subject to radically different architectural and planning traditions, could have been overwhelming. But the commitment shown in responding to these challenges is a story of outstanding achievement.

"Berlin is both rediscovering and reinventing its unique sense of place and identity. The fundamentals of plan and form incorporating green spaces, water and nature are being reinterpreted with both an eye to the past and the future. It is also an affordable city in which to live and work, a place that offers a high quality of life."

Amsterdam was seen by the academy's adjudicators as a well-managed city, with a proud tradition of urban planning and huge ambition for the future, particularly along its waterfront, with an urban plan and form that are still shaped by the need to control water.

Barcelona was described as a city with a strong local character, a clear vision of its role as the capital of Catalonia and an equally strong design culture and civic leadership.

But there was concern that emerging high-rise development is more redolent of Benidorm.

In last year's Urbanism Awards, Edinburgh beat Dublin and London to take the European City of the Year award. Other winners were Ludlow (Great Town), Glasgow's Merchant City (Great Neighbourhood), Marylebone High Street (Great Street) and London's Borough Market (Great Place).

Frank McDonald is a founder member of the Academy of Urbanism

© 2007 The Irish Times

Berlin named as City of the Year

Why Property Investment in Germany

Economic developments

A robust development in the global economy, strong growth in the Eurozone are indicative of the current macro environment and are the driving forces behind a boom situation that Germany's economy has been waiting for years. Towards the end of 2006, the German economy experienced its strongest upturn since the New Economy boom in 1999/2000. All significant economic indicators point to a positive growth outlook for 2007 and suggest a sustained economic revival that will not lose its impetus during the following year.
In 2006, the German economy regained its role as the power behind growth in the Eurozone, the vitality of this upturn exceeded all expectations.

The German Property Market is Europe's biggest with record transactions in 2006. Figures for the first half of 2007 show no slackening in volume.

Despite the high demand prices are still low in comparison to international markets, even the Eastern European ones. The potential for property appreciation is strong.

The rent level is still low and trailing behind the economic development. So buying now offers an upside on the cash flow as a good management can capitalise on the catch-up to follow.

Germany is still currently one of the few major economies where an investor can expect a positive cash flow from property investments.

Why now?

Global property players have been in the market for over two years now and have tied a great deal of their equity. This is where the chance lies for new arrivals in the market. Good investment opportunities require speedy decisions and ready available equity. These factors create a competitive advantage in the market. Equity is the easy part for a new arrival in the market but speedy decisions require market information and knowledge if they are not to turn out as risky or maybe wrong.

There is only one solution to this situation - alliances with trustworthy partners already present in the market with access to off market properties and know-how in their purchase and operation.

What is the best strategy?

Developing the right strategy for the way in and the way out again is key to any investment. The properties need to be selected for the investment period envisaged. The exit strategy has to be clear and the business plan developed accordingly. Whether sale as condominiums or a block of rented apartments, market knowledge of the respective markets is vital for the right purchase decision and the business plan. With the right partners at the starting point a successful and profitable exit after 3 to 7 years, depending on the strategy, is easily achievable.

For more detailed information please visit the website of Berlin Portfolio Ltd or contact the author by clicking on this link:E-Mail

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Why Property Investment in Germany

Foreign Investors are looking for German Compentencies

Especially foreign investors are currently looking for a "Home Base" in Germany. They do not have their own offices here but bought substantial property portfolios throughout the last months. Just Property Management does not achieve the investment objectives of stable development of the portfolio value. A growing number of Investors are looking for experienced partners in Germany.

The German market is reacting by establishing the service providers to meet the growing needs. Just renaming a property management will not do the trick!

Foreign Investors are looking for German Compentencies

Asset Management for Properties

1. Asset Management

As Asset Managers we look at the entire existing portfolio with regard to any planned portfolio changes.

1.1 Operational Cost and Income Structure
We investigate the cost and income structure to identify opportunities for improvement. This can be active Supply Chain Management, combining the entire portfolio and in the next step bundling the buying power of different portfolios we manage in negotiations with suppliers.

1.2. Capital Expenses Based on the results of the Due Diligence
We establish a rolling Capex Budget Plan which is kept up to date with the actual needs. We identify those investments that might bring a quick win through improvement of the rental situation.

1.3. Organising and Supervising the Property Management
Based on a detailed scope of works we develop based on the investment philosophy of the investor, we help to identify and contract appropriate service providers for Property Management.

Main tasks for the Property Manager is rent collection, dealing with tenants and service providers, maintenance and repairs within the framework set by the owner or his Asset Manager.

1.4. Performance Measurement is key to our service philosophy:

What you measure is what you get!

We have developed a system of Service Level Agreements with Key Performance Indicators for Property Management including performance reviews and evaluations. We always incorporate a performance based element into any management fee, including our own.

There is also the aspect of measuring the performance of each property in a portfolio and the entire portfolio against the business plan at the outset. This aspect is reflected in our performance focussed reporting. A separate posting for Performance Measurement will follow.

1.5. Reporting in compliance with the needs of the investor/owner
We develop a reporting structure and make this part of any contract with Property Managers and/or Facility Managers. It defines time and contents of any regular or ad hoc reports. A summary report by the Asset Manager is available to the owner on an internet based Client Portal and is the Executive Dashboard.

Applying the Balanced Score Card philosophy this report contains the actual data and performance against agreed targets. Besides the obvious like rental income, this might include tenant turnover (as a measurement of the customer care by the Property Manager), the meeting of reporting deadlines and financial management and other goals that are important to the investor.
Operational reporting is also of growing importance for lenders. Not only in cases of securisations extensive quarterly reports are required. If you are interested to find out more about our reporting tools please check back weekly.

1.6. Risk Management Because financial institutions have to perform a risk assessment before any lending, if the investor can show that he has his own risk management in place it will influence the interest rate positively. We establish and agree a risk matrix with the owner and actively manage it during the operational phase.

1.7. Outline Proposal as a guideline we have prepared a generic Outline Proposal which will be detailed in each case for each investor and Property.

For more information about Asset Management and the Outline Proposal please make visit our website www.berlin-portfolio.com your request through the Feedback page.

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Asset Management for Properties