Crew Property Management Case Study - Recovered $40k income for client

Crew Commercial recently onboarded a property portfolio consisting of three industrial assets located within Queensland. Upon transfer, Crew Management found large discrepancies in monies outstanding on each asset which appears to be as a result of failures in procedures from the previous service provider. The below is a summary of income discrepancies on each site:

Asset 1.) Confidential location, Banyo :

• $7,461.67 in total funds not invoiced for rental owing FY21-22 period
• $8,847.90 in overdue expenses not paid or recovered from the tenant on the asset for FY21-22 period
• Lost bank guarantee
• No public liability on file
• No entry reports / condition reports on file
• Rental income categorised incorrectly on statements
• Tenant verbally promised re-paint incentive on renewal of lease, which was never communicated to the owner

Asset 2.) Confidential location, Upper Coomera:

• $17,260.42 in total rent income not collected in FY21-22 period
• $6,994.08 in unpaid expenses on the property and not recovered by the tenant (despite being on a budgeted outgoings system)
• Tenant paying budgeted outgoings with no budget done by previous agency or reconcile completed on file
• No outgoings charged on invoicing records
• No public liability on file
• No entry reports on file

Asset 3.) Confidential location, Morningside:

• Circa $15,603 (May-June 22 estimate) unaccounted for rental income not collected on property
• $4,186.14 in unpaid expenses on the property not paid or collected from tenant
• No public liability on file
• Tenant was paying budgeted outgoings per month with no budget outgoings reconcile completed and was not provided any budgeted outgoings forecast for the year

The summary of financial impact to the Landlord was as follows:

• Over $40,000 in rental income outstanding and owing to the Lessor for FY21-22 period
• Circa $20k in overdue expenses and incurred penalty fees as a result of non-payment for FY21-22 period

Crew Commercial’s property management team were quick to identify these financial irregularities as part of the audit on transfer of assets. As a result of finding these issues, the Lessor will now be reimbursed all monies outstanding and expenses paid for the FY21/22 period by the previous managing agency. This has provided our new client with no financial loss for the FY21/22 period and avoided the stress of legal proceedings. Perhaps just as importantly the relationship with the tenants has vastly improved as a result.