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The value of any commercial or rental property is determined by a number of factors including most importantly the current and prospective income from the occupants of the property, the legal status of the occupants and the form and condition of the property. Maximising the value actually received requires the property to be managed correctly which means appointing a professional property manager.

A typical property manager acts on behalf of the freeholder ie the ultimate owner of the property to collect the annual ground rent from the lessees occupying the property, ensure that the occupants do nothing to the structure of the property that might impact its value such as building an extension or making an alteration and regulate ownership by dealing with under-lettings and sub-lettings.

Normally, the freeholder will also appoint a managing agent and it is the responsibility of that company to collect the service charges from the occupants and provide a repair and maintenance service to ensure the fabric of the property and central services within the property eg water and electricity are in good order.

Managing the relationship between the freeholder and lessee can be a tricky assignment that requires timely processes, accurate record-keeping and efficient administration. An example of a long-established property manager is Simarc.

Clearly, from an individual lessee’s point of view inaccuracy in rent demands can lead to considerable frustration and worry especially when for instance the property has been sold or the lease assigned. The more professional organisations possess online portals that allow their respective lessees to log-in remotely to update their details and view their payment status. This removes the uncertainty of whether the rent payment has been safely received if sent by cheque through the post.

Some property managers like Simarc also handle lease extensions and the sale of the freehold in a house or bungalow or the sale of the freehold in a block of flats to all the lessees.

Equally, property companies that own a large number of freeholds depend upon the collection of the ground rent for a substantial part of their income and therefore have to be able to rely upon timely collection by the property manager.

Simarc is responsible for several thousand freeholds and is therefore one of the largest property managers in the UK. To speak to them please go to Simarc Property Management