Good Managing Agents Save Costs
July 15, 2010
Private Rented Sector
July 15, 2010
/property/the-retreat-sw18/”>The Retreat is a development in Earlsfield, SW18 that Young Group and its clients own.
The development completed late 2008.
A managing agent was appointed (for clarity a managing agent looks after the fabric of the building and its insurance – basically everything outside the front door of the apartments). The scheme consists of twenty-six 1, 2 and 3 bedroom private residential apartments and 14 parking spaces.
The managing agent set up the usual cleaners, gardeners, insurance for the block, lift maintenance, etc. The block was reasonably well
However, I felt the costs of running such a new development was high.
As part of Young Group’s asset management role we spoke with other managing agents to establish if the cost levels were correct. We decided that costs could be saved and chose to appoint Chainbow to manage the development.
They took over a few months ago and I have been really pleased with the decision. So far the service levels have been good and financial savings better than I conservatively estimated. Here are a couple of examples:
Lift maintenance :
Prior year spend using previous managing agents appointed lift maintenance company (1 yr contract) : £7,219-
New contract with Chainbow’s appointed lift maintenance company (1 yr contract) : £4,980-
Saving: £2,239 – 31%
Arranged by the previous managing agent: £9,210-
Arranged by Chainbow: £7,500-
Saving: £1,710 – 19%
You are about to ask the question are the terms on the insurance policy the same
? The answer is the type and cover are exactly the same, I expect the difference is because Chainbow do not accept a commission.
our clients investments is something we pride ourselves on.