Overcome the challenges of smaller sites with optimised bundled service pricing for PPM.
Few property managers relish taking on smaller, remote, multi-tenanted sites to manage. They often enter the mix as part of larger portfolios and management fees rarely balance up with the amount of work required. It is often understood that this will be recouped on the larger sites in the portfolio as part of the overall fee.
However, this idea of 'swings and roundabouts' cannot be applied to the service charge. There simply isn't the budget available to approach these sites in the same way a larger one would be treated. Tenants in these properties tend to be much more cost sensitive and are more likely to challenge the service charge. Sites are also often unmanned, so profitability is further eroded if FMs have to go out to site themselves to resolve any issues.
In our experience the larger M&E companies have little interest in these sites and take them on reluctantly. There is often very little 'kit' on site but the M&E company still needs to deploy a range of different engineers making them a potentially expensive option.
Metro Safety has built its business by focusing on these types of sites. We are completely nationwide and can offer a targeted 'small site' bundled PPM package that is great value.
Summary of Issues on Smaller Sites
- Often have limited M&E equipment on site - but it still needs servicing.
- Cost sensitive, demanding tenants.
- Limited service charge budgets.
- Small management fees with little or no contingency.
- Can take as much management time as larger, more profitable sites.
- Often not suited to larger M&E's operating model.
- Frequently unmanned.
Unfortunately all these issues are often further exacerbated if the site is remote and / or in a less affluent location. However, there is still the need to prolong the life of plant and machinery, keep repair costs down and stay compliant.