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The 30 second snapshot...

The recession has already dealt two severe blows to the property investor - reduced asset values and lower yields. Now it's about to follow up with a low punch - increased dilapidations.

In the majority of cases, maintenance is the responsibility of the tenant. However, given the pressure on cash-flow and the continuing reluctance of banks to restore the required level of business lending, can landlords trust tenants to comply with their obligations and maintain property to an adequate standard?

The risks for the landlord are potentially severe; large and unexpected repair bills, reduction in asset value and in some cases legal liability in respect of breaches of health and safety legislation. Occupiers have their own challenges and typically place maintenance low on the budgeting priority list. Landlords need to understand the challenge and respond with appropriate strategies and tactics to manage the threat and retain control.

Ask yourself...

How well are your tenants maintaining your properties?

Do your properties have Preventative Maintenance Programmes?

When did you last inspect your buildings?

Do you have a risk assessment for each tenant?

Do you have a strategy for multi-let properties that reduces your financial exposure?

Do you know what actions you should be taking to reduce your risks?

NB Real Estate will help you meet the challenge. 
       

The three minute highlight...

We all maintain our cars. We wouldn't dream of buying a new car and then ignoring the service schedule, driving it until we disappear in a cloud of smoke and assorted mechanical shrapnel. We have a service schedule and we stick to it.

So if we can get it right with a car, what's the problem with maintaining our business premises? 
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The three minute highlight
The full story...

Maintenance can be like an unwelcome acquaintance: We respect it, but would prefer to meet at some other time. There is always something more urgent to be attending to than maintaining a building.

In the great scheme of things it's unlikely to put us out of business in the short term and equally unlikely to create a substantial business opportunity. It's just another part of the overall cost of running a business and as such, procrastination is a natural default tactic. 
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The full story
The poll...
Do you have a planned programme of preventative maintenance for your property portfolio?

The full story