Is allowing operators to deal with inventory reporting worth the risk?
Should asset owners leave inventory property reporting in the hands of an operator’s concierge, or entrust this technical task to an independent professional?
What if asset owners were offered insurance premium discounts for following industry best practice?
When operators bid to win contracts, they work off slim margins to be price competitive.
From an operator’s perspective, property reporting is one area where potential savings can be made, if operators choose to carry this out themselves.
When taking a whole-life costing approach, how does the operator’s DIY process serve to protect the asset owner’s portfolio and what are the benefits of employing the services of an independent specialist?
Insurance underwriters see risk-mitigating value in an independent inventory company carrying out the property inspection
Insurance underwriters see risk-mitigating value in an independent inventory company carrying out the property inspection service and offer asset owners discounts on their insurance premiums as a result. This increases yield by lowering operating costs and relieving operators of a technical task in which they are not experienced or best positioned to conduct.
Reports generated from detailed property inspections can be filtered to extract an Asset Register Report which can then be reconciled against the asset register.
Keeping this information up to date ensures a product recall, such as an appliance deemed as a fire risk, can be quickly identified and removed from a development. Another key risk mitigating factor for the insurance underwriter.
The above approach is one way of using data already gathered by an independent professional, to help streamline your operation whilst driving operating costs down.
Engaging a property reporting professional:
- Improves return on investment by reducing your operating expenses
- Follows industry best practice
- Better protects your assets
- Pays for itself
- Relieves operators of a task in which they are not experienced, or best positioned to conduct
- Gives residents the comfort of knowing there is no conflict of interest
The cost of using the independent inventory company should be offset by the increased claim value against deposits currently being missed by inexperienced operator personnel who are encouraged to develop a personal relationship with their residents.
All claims proposed must be reasonable and deemed by the independent inventory company, applying professional industry standards, to be in excess of fair wear and tear.
A study by Letcheck of a new UK development of 400 units over an 18-month period found the average claim value (in excess of fair, wear and tear) per unit, when assessed by the property manager was £200.
Residents, when asked, feel uncomfortable with the conflict of interest that is apparent when a landlord, or operator, conduct property inspections.
Our resident survey conducted over three years highlights that fewer than 10% of residents want landlords to conduct these inspections.