THE MANAGEMENT OF PREMISES
The following comments are provided to help all clients for whom we manage property.
Unless otherwise agreed in writing it is assumed that as managing agents our instructions are:
• To ensure the income generated by your property continues and/or improves.
• To ensure a good ongoing relationship with existing and new tenants.
• To keep you informed of properties which, in our opinion, may be of interest to you to purchase.
• To be aware of opportunities for the disposal of assets.
Our aim is to be constructive and professional at all times. We fully appreciate however that as our client you have the right to ignore our advice!
CONFLICTS OF INTEREST:
As the longest established Agency/Chartered Surveying practice in North Oxfordshire dealing exclusively with industrial, commercial and retail properties we do occasionally face a potential conflict of interest. We will always notify you in advance of such concerns and seek your further instructions.
Since establishing Bankier Sloan in 1984 we have notified clients on fifteen occasions when we believed such a conflict might potentially occur. On all occasions the parties have agreed an acceptable course of action.
Bankier Sloan holds a professional indemnity policy, in accordance with the requirements of the Royal Institution of Chartered Surveyors, with R.S.A. Insurance Group Plc.
All professional work is undertaken by the sole proprietor, Ian Bankier Sloan, who is a Fellow of the Royal Institution of Chartered Surveyors.
Clients are welcome to make contact as follows:
Shenington 01295 688384
Moreton-in-Marsh 01608 652888
Mobile 07831 338111
It is our normal policy to invoice tenants approximately twenty one days before the rent is due using client’s notepaper (or paper produced by us on behalf of clients!)
We ask tenants to make cheques payable directly to our client, although we ask them to return payment to this office.
We recommend that all service charges are collected on a quarterly basis, even when the sums are relatively small.
If no service charge is due for any given quarter, we nevertheless recommend a note is sent to the tenant setting out the situation, thus ensuring that they continue to be aware that a service charge will become payable at the appropriate time.
We will always advise our clients of their repair liabilities, while at the same time trying to ensure all tenants meet the liabilities to repair/maintain premises. Landlords do sometimes need to carry-out work for the long term benefit of a property without short term financial gain.
It is our practice to notify tenants annually that we do retain the services of local Certified Bailiffs on behalf of clients.
We provide tenants on an annual basis with a single sheet of information which will be helpful to the good management of premises. A copy will be provided to our clients for approval before delivery.
Bankier Sloan does not hold clients money and does not operate a Clients Account.
We ask all clients to be aware that tenants may have a right under the terms of existing leases to see service charge accounts.
Clients should operate a system which allows Bankier Sloan to identify relatively easily funds set aside for this purpose, so that when tenants make a formal request for information relating to service charges and maintenance costs, these can be identified.
It is our policy to agree an initial fee structure, which in recent years has seen an increase averaging 4.2% annually.
It will be appreciated therefore by clients that this fee structure allows us to reflect an increase in our costs, without necessarily benefiting from any major uplift in income received by our clients as a result of rent reviews/lease renewals that may have occurred during any given calendar year.
1.25% of the acquisition price, on freehold purchases. Leaseholds by negotiation.
We assume, unless otherwise agreed, that our clients are prepared to accept our standard fee structure which is:
a) 2% of freehold sales.
b) 10% of the first years rent on new leases (excluding any rent free period that may be given).
c) 8% of rents achieved on review, although we usually agree actual fees with clients in advance (this will usually be a minimum of £350 and a maximum of £5,000).
Expenses are usually included within our fee structures, with the exception of marketing and out-of-pocket expenses incurred when selling either freehold or leasehold units. In all cases we will agree expenses in advance with clients.
VAT is charged on all fees. If our clients are not registered this will not be recoverable…sorry!