Landsdowne Investment Properties CEO Jonathan Kohler spoke at the Affordable Housing Conference on the 14/9/2011. Addressing the topic of PROPERTY MANAGEMENT below was the presentation:
INTRODUCTION:
Doing the same thing over and over and expecting different results was Albert Einstein?s definition of insanity. It may also be a practice with which you, as a Trustee of a Body Corporate or a Home Owner?s Association Director, are all too familiar!
If you have taken the step to appointing a managing agent to look after your development, do you find that, year-in, year-out ? your agent addresses the same old challenges with the same old thinking? The standard budget is applied, just slightly updated? The self-same insurance solutions are adopted for another year, instead of analyzing what COULD be done to save costs and still keep pace with inflation. Perhaps bad debt too remains a problem ? but the collections process has not changed for longer than you can remember.
You are happy with the heritage and experience of your managing agent,but feel frustrated by their traditional approach which leaves no room for proactive innovations. The kind of smart thinking that could save your development a small fortune, control costs, save you hassle and time AND most importantly, secure the long-term investment value of your property. You are thinking of appointing a managing agent to look after your development but want to be certain they will really add value. When so many agents apply ?cookie stamper thinking? from one development to the next ? how can you be sure your development will benefit from individual thinking and services? That your own unique set of circumstances will be tackled head-on?
THE POINT OF DIFFERENCE:
Whatever your situation ? let your starting point be a discussion with Landsdowne Property Management. Landsdowne offers you a complete, turnkey solution to property management that is defined by innovation and strategic thinking. We offer both a financial and operational administration service that covers all aspects of management of Sectional Title townhouse complexes and Section 21 freehold residential housing estates. Landsdowne understands only too well that as a managing agent, we are responsible for one of the world?s most expensive asset class ? property. More than this ? we are charged with preserving the key assets of the individuals we serve. This is why our approach is as dramatically differentiated as it is successful?
THE LANDSDOWNE LAW:
LEVERAGING - Our simple commitment is to ?bring out the best? in your development. You bring to the party a sound property investment ? it?s OUR job to help you maximize the performance of this asset? To optimize and build on strengths, to take what is there and provide you with the real returns of time-saving, cost-consciousness and long-term investment growth.
YOUR - At Landsdowne we know there is no ?typical property? ? there are only investments that come with unique challenges and opportunities. That?s why our approach is individual and innovative. We take nothing for granted, question conventional wisdom to provide customized solutions, as well as answers to questions you perhaps haven?t even thought of.
SUCCESS - The Landsdowne way is to start with the outcome you?re looking for and work back. A well-managed, smooth-running development that works, that is in great financial health and that provides a return on investment are just some of your objectives that drive us.
THE PEOPLE BEHIND THE PERFORMANCE:
Landsdowne Investment properties was formed in 2006 under the Managing Directorship of Jonathan Kohler - a dynamic captain of industry who had helped forge the strengths of Summercon Property Development with such signature developments as The Nicol in Bryanston, Morningside Village Estate, Castellet and Broadacres Country Estates, Stonewood and Sibiti in Fourways and Lonehill Village Estate.
Jonathan?s experience in property development was a natural springboard for his creation of a specialized company providing specific management solutions for off-plan developments. The diverse challenges that are as unique to each development as the residents themselves? financials and budgets that require both right-brained reason and left-brained solution-seeking mastery. This was the appeal for Jonathan, and it is through this that his name and that of Landsdowne have become synonymous with property management for the new millennium.
Coupled with Kohler?s acumen is the solid financial expertise and corporate strategy that comes in the form of Wouter van den Heever. Having received a degree in Economics in 1993, Wouter quickly found his place in the Financial and Services Industry, at First National Bank and Standard Bank. After establishing a successful career at the Royal Bank of Scotland in London, he went on to work for 8 years in the Sectional Title Management industry, where he acquired specialist insight. He has a number of high-ranking qualifications for Sectional Title Management under his belt and started his own sectional title business in 2008 before forming a joint venture with Landsdowne Investment Properties in 2010.
WHY DO YOU NEED LANDSDOWNE? you?re a development trying to go it alone...
Without a managing agent looking after your development, you?ll no doubt have had enough of the endless responsibilities that come with running a successful resident scheme and serving as a trustee. From budgets to benchmarking insurance options, from keeping up to date with changing legislation to chasing unpaid levies ? it can be a full-time job. A job you probably have to do in your precious free time! Just some of the eternal dilemmas you face may well be:
Not having the skills, experience and acumen to deal with the detailed financial demands of managing a scheme. Only with this kind of knowledge can you begin to make sure the property realizes its full investment potential and ?works hard? for stakeholders.
The impossible task of keeping up with changing property legislation.
Trying to navigate the rough waters of a troubled economy. How do you factor Eskom?s multi-year tariff hikes and rates increases into levies?
Trying to keep your development financially healthy in the face of rising consumer inflation and across-the-board increases.
The ever-spiralling costs of building, maintenance and repairs.
Making sure that there?s always ?something in the kitty? ? financial provision against the unexpected.
Having financials properly completed and available.
Making sure the residents? levies are in line with costs, bearing in mind the effects of inflation ? and factoring-in projected expenses. Do you have the skills and time to do this effectively?
The pain of trying to run your scheme ?in your spare time.?
The ongoing complaints and sometimes unpleasant behaviour of disgruntled residents - which can often lead to conflict and unnecessary tension.
The eternal headache of dealing with property owners who are defaulting on levy payments, even threatening the financial stability of your scheme.
WHY DO YOU NEED LANDSDOWNE? you?re looking for a management agency with a difference...
You want a managing agent with specialist property experience, knowledge and a trusted name.
You want an agent that will see your development and its needs as individual and unique ? and deliver forward-thinking, proactive solutions shaped around your requirements.
You?re looking for a new, fresh, smart approach ? a whole new set of ideas and outlook not traditionally found in property management.
You want more than property management ? you?re looking for business solutions.
You want to make sure your development performs as a smart, lean and sure-footed ?business?.
FINANCIAL MANAGEMENT: A full service offering...
At Landsdowne we handle the total financial aspect of your development, taking the headache away from trustees ? yet your financial affairs and account retains its independence, autonomy and absolute privacy. While most traditional management companies run Trust Accounts shared by all clients/developments ? Landsdowne?s financial policy is that each estate we manage has a separate bank account opened in its name. Only your trustees have access to this account - but you enjoy the peace of mind and simplicity of having us handle full administration. This end-to-end financial offering means you enjoy:
FULL BUDGET COMPILATION - We understand that your budget is a living, dynamic document and can never be developed by simply referring to ?what we did last year?. Each year, we provide an annual budget for your complex, developed in conjunction with your Trustees, to ensure it completely mirrors your exact needs and individual situation.
ACCOUNTS KEPT UP TO DATE - We produce and manage the monthly billing of levies to owners and keep proper account records for each levy account. This includes meter readings taken so that each owner is billed for utility. We also provide levy clearance certificates to attorneys to assist with transfer.
DEBT MANAGEMENT - We recover all outstanding levies and other monies owed by owners to the complex and calculate and allocate interest owed on arrear accounts. When necessary, this includes working with the complex?s attorneys.
FULFILLING YOUR FINANCIAL OBLIGATIONS - On your behalf and from levies collected, we pay all service providers, taxes and other expenses. We also ensure that municipal accounts are checked, verified and paid monthly.
REPORT COMPILATION AND SUBMISSION - We put together and present to the Financial Trustee/Director, a monthly financial report that gives an overview of the financial position of the complex. This is a detailed report that covers income statement, balance sheet, cash flow, financial and operational report, debtor?s age analysis and collection report as well as a comparison against budget.
FULL LEGAL COMPLIANCE - We maintain all accounting records for the complex, ensuring all statutory requirements are met.
FINANCIAL AUDIT COMPLETION - We prepare the Annual Financial Statements of the complex and liaise with auditors during the auditing process.
MEETING OF TAXATION OBLIGATIONS - We make sure your tax returns are submitted to deadline and that provisional tax payments are made. This regular tax ?housekeeping? ensures there are no nasty surprises.
OPERATIONAL MANAGEMENT: A full service offering...
Equally important and key to the successful day-to-day running of your development are the purely operational management issues that we deal with on your behalf, many that absolve you from immersion in the morass of both statutory and non-statutory legislation, laws and bye-laws. Then, there are another 101 routine requirements, obligations, responsibilities and duties directed toward keeping owners and tenants happy, all of which are obligatory and constitute the proper operational management of any multi-unit residential complex. Typically these are:
KEEPING YOUR HOUSE IN ORDER - Each month we will liaise with government in terms of all necessary licenses and consents required by the complex.
HANDLING OF OWNER QUERIES - We will assist any owner with regard to queries regarding levy statements as well as with any financial complex-related issues.
ADDING PEACE OF MIND TO INSURANCE - We handle all insurance claims concerning areas within that the complex that are common property. Each year, it is also our role to arrange insurance solutions as stipulated by the Sectional Titles Act and the Trustees.
INFORMED ADVICE & ASSISTANCE - We are responsible for informing Trustees/Directors on any legislative and procedural matters that relate to the running of the complex.
KEEPING COMMUNICATION OPEN - In terms of regular, ongoing management of the complex, we will assist with the distribution of all notices and circulars to owners and tenants.
ENSURING EXCELLENT RUNNING ORDER - We will consult with professionals to advise on maintenance and repairs for common property areas. In addition, we will negotiate with professionals and companies to ensure that necessary specifications for maintenance and repair contracts are drawn up.
GOOD CORPORATE GOVERNANCE - We arrange Annual General Meetings and any special General Meetings in line with the conditions detailed in the Sectional Titles Act or Articles of the Homeowner?s Association. We also take responsibility for detailing and distributing Minutes of these meetings.
LEGAL COMPLIANCE - As far as maintaining minute books, attendance registers and other permanent records goes, we make sure that your complex always acts and runs in line with the Sectional Titles Act / Companies Act.
RENTAL AND SALES OPTION - Because of our background and expertise in this area, we are well qualified to provide this specialist service as an added benefit to our clients.
The services provided by Landsdowne can be summed up in our effective bottom-line delivery. We provide a service second to none to ensure...
...we save you valuable time and effort.
... we save you money by getting to the CORE of your issues, through lateral problem-solving and consistently asking ?what if??
... your asset is managed, with a particular focus on ensuring financial reserves are maintained at all times.
... the marketability or ?sales worthiness? of your complex is protected at all times.
... the desirability of your complex is safely-guarded ? ensuring your developments remains a property in which people want to live.
... the continuity of your development, year on year, is safeguarded.
TAKE ACTION NOW
Put the Landsdowne difference to work for you NOW. For more information or to organize a personal consultation to discuss your needs, please contact:
TEL: +27 (0) 11 465 4596 FAX: +27 (0) 11 465 2738 JONATHAN: 082 904 0739 jonathan@landsdowne.co.za WOUTER: 073 186 1566 wouter@landsdowne.co.za