The Five R’s of Property Maximisation 

Bill Naylor, Managing Director of Naylors Chartered Surveyors, tells how proactive property management can contribute directly to your bottom line and identifies five areas for consideration.

For most businesses, property is almost always either the biggest asset, or the biggest liability on the balance sheet, and maximising its return whilst minimising any negative impact on the bottom line is a vital part of your financial planning and management process.

Never has this been more important than in today’s economic climate when all around are tightening their belts and every cost has to be scrutinised and justified.

Whether you are an owner occupier, landlord or tenant, a professional property review, carried out on a regular basis, could render significant benefits.

Naylors Chartered Surveyors has a wealth of experience in the North East property market and has identified a number of general issues to be considered, we call them the 5R’s of Property Maximisation.

Rents

If you are facing a rent review or lease renewal, there is the opportunity to ensure you are paying, or receiving, the current market value. However the opportunity such negotiations bring to re-gear lease terms should not be overlooked.

Rates

There is a Rating Revaluation due in 2010 and your rate bill from 2010 onwards may well be based on the amount of money you pay in 2009, therefore it is prudent to make checks to ensure that you are not paying more than is absolutely necessary. You may have grounds for making an appeal on the Rateable Value of the property.

Repairs

A pro-active maintenance plan is guaranteed to save you time and money and, through early identification of potential problem areas, will help avoid a costly repair bill. It is worth considering the appointment of a professional management agency to look after your property, as well managed properties hold their value better and present fewer problems.

Real Occupation Costs

An Energy Performance Certificate enables “real” occupational costs to be assessed by identifying a building’s energy expenses. However, an energy performance report can also identify savings and commissioning one makes sound economic sense. EPC’s are currently required for all properties when they are put on the market, but at Naylors we believe there is a high likelihood that future leglislation will tax poorly performing properties thereby making EPCs an essential part of all forward business planning. Another point is to check out all service and utility providers to ensure you are getting what you pay for at the best price.

Risk Avoidance

Breaches of lease or insurance obligations could cost more than cash alone so make sure you understand the terms and conditions and obtain expert advice if necessary.

These issues are ones that every company should look at in an effort to improve the efficiency of their property assets and are equally valid for landlords, tenants and owner occupiers alike. In addition, owners should obtain an up-to-date valuation of their property as this can add confidence to the balance sheet and act as collateral for loan security in these ‘credit crunching times.”

The team at Naylors is always available to offer professional help and impartial advice and can even undertake a complete property health-check which will identify areas for improvement.

For further information on how to make your property perform at its best call Bill Naylor on 0191 2327030 or email billnaylor@naylors.co.uk

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