Problem Solving during the COVID-19 Pandemic

We did not apply a standardised plan across all tenants. Instead each were treated on a circumstantial and individual basis. Although this meant extra work it was the best approach and demonstrated the personal responsibility we take for each tenant and asset.

Our main priority was to keep tenants from defaulting and ultimately protecting our clients cashflow. This meant proactive management rather than waiting for distressed clients to approach us.

Overall our rental arrears have been significantly below the UK average with an overall average of under 20% across all four assets.  Inclusive of rent free, monthly instalments, deferred payments and discount.

Burdett House continues to have zero rental arrears.

We were quoted circa £1m for the refurbishment works for 3 floors at Burdett House by a large corporate management firm.

Through our own tender process, extra due diligence and close work with our property management team we were able to achieve an overall cost saving of 65% for the client as the total expense came to £350,000 for the same high quality refurbishment.

Despite a 12 month plus lockdown in London, and the government guidelines for employees to work from home, we have managed to negotiate several new leases maintaining headline rental levels and incentives in line with the market.

Since taking over the Asset Management contract of 11 Strand we have recovered over £400,000 worth of arrears that were due prior to the pandemic – some as far back as 2016. The previous AM’s took no responsibility and were negligent in their management. This had significant repercussions on the service charge budget and meant the landlord was funding the costs out of their own pocket.

We have cleared all tenant arrear queries and reconciled all payments due.

This was a similar scenario incurred when we took over the management of Gracechurch St, with over £200,000 of uncollected historic arrears as a result of another big corporates negligence. All of which was resolved within a month of instruction.

In line with the new regulations, we took the opportunity to claim capital allowances from the completed refurbishment works and other items relating to the general building and maintenance for Burdett House. We are pleased to say that the total claim came to just under £1 million.