SUB TENANT RECOVERY

  • We calculate and recover of sums due from sub tenants.

Our experience has shown us that many "non traditional" landlords overlook the ability to recover all or part of service charges they pay to landlords. This occurs at locations where the head landlord provides the services and our clients as direct landlords need to pass on a proportion or the whole of the service charges, where they have sub let part or the whole. In the absence of clearly identified sub tenancy opportunities. Property Solutions can identify situations where there is potential recovery by interrogation of payable and receivable databases.
 

Once specific locations are identified we check leases, any recovery history and compile evidence to support recovery of un demanded sums. Optionally we can also collect sums on the client’s behalf if required.


WHAT ARE THE BENEFITS FOR LANDLORDS?

Property Solutions takes responsibility for analysis of lease terms, gathering cost information, apportionment, calculation and audit trail.

  • Increased cost recovery for landlords.
  • Compliance with lease requirements for recovery of costs including covenant to enforce terms of head lease.
  • Independent audit of recovery.

WHAT DO PROPERTY SOLUTIONS DO?

  • Identify locations where sub tenant recovery is possible from lists supplied by clients or by analysis of clients service charge payable and receivable records.
  • Obtain copies of necessary documentation from clients records or where necessary seek these from landlords or managing agents.
  • Review sub lease and head lease provisions.
  • Establish recovery history.
  • Confirm apportionment.
  • Confirm certification and on account position re head lease.
  • Calculate sub lease service charge recovery.
  • Prepare audit trail.
  • Advise client or collecting agent demands (if Property Solutions are not collecting).
  • Prepare statement of account with supporting documentation.
  • Issue statement of account to sub tenant.
  • Respond to tenant queries.

PARTNERSHIP

Property Solutions will work closely with you in setting up and running the service to make sure that your requirements are met. Property Solutions will agree with you:

  • Methodology for access to information.
  • Communication points and processes.
  • Reporting requirements.

FINANCIAL BENEFIT

Property Solutions has a proven track record in achieving sub tenant recovery at locations where this has not previously been put in place and in identifying locations and costs where recovery has not previously been achieved.
Note: The process may identify situations where credits are due. However it is important to address these situations to comply with lease terms and ensure there is no outstanding liability.


FEES

These are negotiated with each client. Fees for certification are usually as a percentage of sums recovered but can also be on a time charge basis. A minimum fee per location usually applies.


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