Don’t let one leaseholder damage your relationship with the rest of your leaseholders with estate management software for Sage.
When you take on the role of maintaining a building on behalf of a freeholder, for the leaseholders it is important that you have the funds available to do this. Forecasting and calculating a service charge budget for an agreed term is hard enough, the challenge is increased when there is no money left when there should be and it is out of your hands.
Managing a property, whether that is a block of residential flats, commercial offices or estates it is important that you have the funds available to deliver the service that is expected otherwise your leaseholders will become disgruntled, they could appeal for Right to Manage, you will lose you contract and this can play a huge effect on your business.
Service Charge budgets are calculated to cover the costs to maintain the non-occupied areas within a site and they are divided amongst the leaseholders fairly. To be able to do this you will need to have money to pay the suppliers.
Collecting money isn’t easy but if you provide the service, you shouldn’t need to ask for it. There are a number of options to go down which will make this process less stressful and efficient, providing a variety of payment options is the main one, especially if you choose Direct Debit. The great thing about Direct Debit is that once the account is set-up, neither party needs to worry. Your client will see their payment leave their account and the date agreed and you will know that you will be paid on-time. This minimises the likelihood of late payments and excuses.
Late payments can be accidental but if they aren’t dealt with quickly then they can accumulate and before you know it your leaseholders are unable to catch up and that one month missed payment becomes two and three and it is now bad debt.
Every business relies on cash flow to survive. You provide and service, you expect to be paid for it on time. This is even more crucial as the knock on affect can be huge when you have an extensive portfolio to please and if you can’t afford to pay for maintenance work to be done, then what was a minor problem can turn into a major, more costly one.
The Service Charge fee is a non-profit charge. Every payment must be accounted for and at the end of the agreed term you must provide a full, transparent report on what has been spent. If there is any money left over then it is either refunded or carried over to the next period, if there is money left, this will be divided equally amongst the leaseholders, including those in arrears. Having outstanding payments complicates things even further when it comes to the income and expenditure page on your end of year accounts as it shows money demanded, not money received.
If you are unable to maintain the building due to lack of funds then the next period will make it harder as the property will be in a worse state, you will need to increase your budget for the next period and that won’t please the leaseholders.
Decorus is property management software with a difference. The estate management solution comes with the tools to work more efficiently and economically thanks to the CRM and its unique integration with Sage. The software works on many levels allowing users to manage all areas within an estate in just one solution, work orders can be monitored and managed with ease whilst you can log details of your trusted suppliers with a database.
When you can streamline your workload you work more efficiently and have the time to improve the value of the service you provide. The integration with Sage sees financial data entered into a format recognised by over 90% of accountants, this not only saves time but also money. You can generate invoices effortlessly and create reports on your portfolio using real-time data.
If you choose Direct Debit for collecting payments then you will benefit for its links to GoCardless too as this takes the paperwork from the process. The additional Credit Control module will also help with cash flow as it chasers your late payers for you.
Book a demonstration of our estate management software for Sage and see the benefits for yourself.