Let’s face it, no one really likes going to the dentist – but you do because you recognise the benefits. Likewise, going to the gym isn’t much fun either – but you do because you understand the rewards by doing so. It’s the same with carrying out regular ‘health checks’ on your property portfolio. It may not be sexy but it’s incredibly important.
Periodic reviews of your portfolio allow you to ensure you are on track with your investment strategy. The review allows you to identify areas of concern / which need attention and to, ultimately, put processes in place to manage risk. The management of risk is just as important as realising areas which could maximise opportunities, which these reviews would also highlight.
So what do these portfolio ‘health checks’ entail? Well, thankfully, it isn’t as painful as pulling teeth. The review is simply an analysis of real estate data. The analysis should be able to allow you to check the leases; health and safety, fire and insurance compliance; that rent is being paid and when; and the service charge position etc etc. If there are gaps in the data, the review will also highlight this. It could also be used as an opportunity to liaise with your landlord / your tenant.
Basically, it is a regular review to see how each property is performing against a series of different metrics. It shouldn’t take long but it will give you the piece of mind that everything is going in the right direction… and if it isn’t, to flag this and to allow you to do something about it.