CERTIFICATION

A large corporate client with space to let in a building designed for single occupancy. The clients accounting systems are set up for running its own business and not for costs recovery.

Property Solutions were able to access the clients various records, including accounting, utilities data and meter readings, facilities job records and staff hours and costs. This involved consultation with Building and Facilities Managers and contractors to enable the relevant supporting data being obtained to substantiate costs to be included in the certificate.

The result was that Property Solutions has been able to certify annual expenditure of over £1m per annum supporting service charges of approximately £247,000 per annum.

SUB TENANT RECOVERY

In mid 2005 we were asked to look at the potential for improving sub tenant recovery across an estate of approximately 350 locations where we were already undertaking administration. We were provided with separate databases providing details of service charge payments, tenancies and receipts, which required amalgamation and analysis to identify potential shortfalls in recovery.

In the first 15 months over £750,000 of service charges have been identified and recovered from sub tenants from 30 locations. A further £125,000 of potential recovery has been identified at 5 locations and 20 other possibilities are being investigated. The largest individual recovery was £104,000 and the lowest £348!

As well as the financial benefit, the process has also ensured that the "mid landlord" is compliant with the terms of the lease with the sub tenants, as issues were raised, which required attention. It was not all win for the landlord as credits were identified which needed to be returned; however this is a liability that needs recognising.

As part of our ongoing partnership with this client we have put systems in place to continually review the level of charges and to ensure that the correct recovery levels are implemented.