Asset/Property Management Due Diligence and Monitoring

Asset/Property management due diligence and monitoring refer to the optimization of asset value and net operatin income, mitigation of various risks, improvement of long term perspectives and capital returns for the project. The approach includes supervision of every part of the management of the project, identifying problems and causes, suggest actions, determine net effect on the asset value and reporting.  

How we can help

Structured analysis
The process includes analysis of management plans and budgets, analysis of expenses, the subcontractors and suppliers work, related to the property. We monitor contracts in terms of income, lease terms, alternative usage, leasing strategy, commercialization of common parts. The analysis also evaluates the roles and responsibilities of the building managers and administrators with regard to efficiency and internal control.

Analysis of revenues, contracts

While monitoring the documentation of the property, our team identifies common problems, such as weak leasing strategy, unfavorable contractual agreements, non-market and un-favorable terms and conditions, abnormal levels of occupational and tenant risks, none or flawed tenants relationship, poor financial control, accumulated tenants liabilities.

Analysis of expenses and services
In order to effectively manage the cost-quality balance, we identify key weaknesses of the property management - unfavorable price terms, inconsistent and inadequate scope of work, abnormal levels of operational and maintenance risks, accelerated depreciation and future maintenance costs, unfavorable environment for tenants, non-working communication with subcontractors, poor financial control, disadvantageous tax position .

Analysis of management and administration
Management and administration is responsible for strategy, results, performance in order to increase the long term value of the asset. In the due diligence process we look over for usual problems – lack of clear and sustainable objectives and strategy, lack of organizational capacity, unclear responsibilities, misconduct of management team members with respect to company, clients or financial institutions, inefficient mechanisms for internal control, or control over subcontractors, none or deficient and non-transparent information management system.