The Joys of Commercial Management
It’s almost the end of February, by now you have been through the joy of dealing with the following:
- An arrears list that has initially given you heart palpations when you first looked at it on January 11
- The plethora of “Oh sorry we were closed and forgot to pay the rent” emails and calls you have received after reviewing the arrears list
- Contractors who clearly spent their Christmas period catching up on all their billing, again, leading you to heart palpitations about the amount of payments to make
- Owners who have run short of Christmas cash asking for early remittances.
So now you think you can sit back and enjoy the next quarter? No! This time of year is the perfect time to get ready for the next financial year.
- Review your Year to Date expenditure on your buildings and see if you’re tracking on budget. If your expenses are below budget, look at what needs doing on the building and if you have received all your accounts.If you’re over budget, look at where you can trim expenditure between now and June 30
- Look at your lease expiries between now and 18 months time, talk to your tenants and see if they have an idea of what they want to do yet, see if you can get any to pre-commit to an option early. If they have no options, see if you can get a new lease.
If you think they’re going to vacate, get on the front foot early and let your agency team know as well as the owner, so there are no surprises
- Do a tenancy schedule audit. Make sure all the rent reviews are up to date, the notification periods for options are documented, and that all the tenant details are correct as well as the tenancy area (has there been a resurvey?) – this will all be helpful at budget time
- Spend some time with your owners (in person or on the phone), create a 3 year plan for the building, both from a Capital Expenditure and Lease expiry point of view. All owners, no matter how small, like to think that we are looking out for them long term
- Get your filing up to date! You would be surprised how it mounts up
If you can do all of this, when Budget season kicks off at the end of the third quarter, it will make your budgeting work so much easier.