Property Solution Newsletter

David Barrass
Managing Director

Welcome to the first Property Solutions online newsletter on service charges. It's designed to keep you updated on the ever changing industry landscape in the service charge sector, now estimated to be worth Ł4.41billion (Loughborough University 2006).

This year has seen a continuation of the substantial changes occurring in the industry. Following on from the publication in June last year of the RICS Code of Conduct for service charges, Property Solutions held its first industry seminar in January 2007 at the Institute of Directors (IoD) in Pall Mall. Entitled 'The Truth About Service Charges' Dr John Calvert of Loughborough University reported on the poor compliance of the industry and made substantial recommendations for change.

We can now announce plans for a second Property Solutions industry seminar. The focus of the 2008 event, which will again be held at the IoD, will be 'Options for Change' and the event will focus on the impact of the RICS Code and examine the likely options for industry change. If you are interested in contributing to this event please contact us at
info@property-solutions.co.uk.

This newsletter also launches the newly formed Portfolio Services team designed to assist both landlords and tenants in the management of service charges. We welcome your feedback on this newsletter. Please let us know what you find interesting and also the information that you would like to see included. Please email us at newsletter@property-solutions.co.uk.


Property Solutions' campaign for the better regulation of service charges has been extensively covered in the news. To view coverage, click here

The RICS Code of Practice came into effect on 1st April 2007. The Code aims to bring a consistent approach to ensure better measurement of service charges by addressing communication, transparency and timing. It also attempts to reduce conflict between managing agents and landlords. Property Solutions has welcomed the introduction of the Code but has reservations about whether it goes far enough to deal with the issues surrounding tenant satisfaction, dispute resolution and whether it offers the industry a long term solution. There has already been some political interest in the subject and it remains to be seen whether the industry will become the focus of legislative intervention.

Property Solutions has launched a new team designed to assist both landlords and tenants in the day-to-day management of service charges. The team offers multidisciplined support from property management, accounting and credit management to financial services and customer services. Tenants can benefit from support for audits; administration of service charges; and a payment service to landlords. For landlords the team offers certification; sub-tenant recovery; collection of charges and service charge accounting.
For more information on the Portfolio Services team click here

Service Charge Consultancy

Building description:

Modern glass clad multi-tenanted office block with mirror image adjoining building. c 67,000 sq ft.

Overview:

Review the annual service charges on the building and make recommendations on ways to reduce the costs. To make cost savings Property Solutions reviewed procurement of services, energy consumption, security and M&E maintenance.

Result:

Original annual service charge cost: £555,000.
Annual service charge cost after consultancy: £385,000

To read the full case study, click here

If you have any feedback please click here

2510 The Quadrant, Aztec West, Almondsbury, Bristol BS32 4TW Tel: 01454 332211 Fax: 01454 332222
info@property-solutions.co.uk

SERVICE CHARGE CONSULTANCY • PORTFOLIO SERVICES • BUILDING CONSULTANCY • BUILDING TECHNICAL SERVICES

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