Today, everyone is looking for a master plan to tackle all their open questions and keep operations running smoothly. This has been demonstrated in our customer support questions. One topic is clearly in everybody’s mind – tenant relations.
Now that we are all facing new challenges, we need to react quickly in order to keep our tenants happy and our businesses running. Therefore, the entire real estate team, especially those who work directly with customers, need to have the best tools in use.
Assetti is able to support you in your daily working routines with help of a few key functionalities and features.
Changes in lease contracts and information
We all know – with industries struggling, jobs and people’s personal income collapsing due to the COVID19, many tenants will struggle with paying their rent. This especially affects the commercial real estate owners, as hospitality, restaurants, and the retail industry are facing times that are even harder than the credit crunch years ago.
Residential investors may be okay, but on the other hand there are residential landlords questioning how they should respond to late rents in the short future. Should they offer payment plans with the rents upfront to ensure that they are able to keep the occupancy high?
Landlords and tenants have to stand together and cooperate in these times. It is important to treat each other fairly and find constructive solutions. After all, a trusting relationship is in the interest of both parties.
So, what’s the best thing a landlord can do?
Simply contact all of their tenants. WIth your lease data stored in Assetti, you can easily extract your list of tenants. You are able to make notes about the leases and record the details of your discussions with your tenants. If you use Assetti, you can just add notes to every single lease agreement and document the outcome of the conversation and their current situation – no need for a spreadsheet anymore!
When you have a tenant relationship management system in use, you will be able to effectively manage your daily tenant operations and update the numbers as well. That eases up your administrative work: One place for the lease agreement, rental adjustment and to make notes on tenants and payments. Additional you can see the history of every single tenant and lease agreement now and in future.
Up-to-date Risk Analysis
The uncertainty of rental cash flow, loan leverage of the portfolios, ongoing CAPEX investments in properties, future financing: all of these needs to be taken into account in your risk analysis. Assetti can help you get a clear understanding of the tenants’ industries and identify potential risks in terms of industries in your portfolio, whether those be hospitality/hotels, retail, restaurants/catering or IT companies.
You will be able to make a demographic-specific analysis and see, with a couple of steps, who are your tenants and what is the overall risk in terms of leased area, rental income or geographical risks. Understanding your risk exposure will help you to capture the “big picture” situation with Asseti’s KPIs.
In addition, Assetti provides property strategy and SWOT analysis. By, that, users can document the market situation and risks involved with the property and portfolio. Updating your strategy in changing circumstances is crucial. It might reveal whether your previous analyses are accurate or not. And how to prepare and manage the change with a required action plan. Through the up to date property and portfolio strategy, Assetti´s customers can make analysis explicit and communicate clearly to the investors and other stakeholders.
This will enable asset managers and investors to have updated long-term plans to protect the investment and have the required action plans communicated. This can include anything from delaying investment decisions related to tenant alterations to setting guidelines on rental levels.
Build different scenarios
Whatever action you decide for your customers or tenants, we can help you to make the impact on your cashflow visible. For example, you can model an alternative budget for the year, based on the changed situation. It gives you answers to the burning questions asset managers, investors, landlords, and banks have: How will the rent discounts or suspended payments affect the finances of the real estate investments?
Take Germany as an example. By law landlords are not allowed to end rental contracts between the 1st of April and the 30th of June if tenants are unable to pay rents due to COVID-19. They have to provide tenants with the chance to pay the debts back by summer 2022. This actions will affect and change the budget for the remainder of this year as well as the following years.
We all know acquiring new tenants is quite a financial burden. Terminating an active lease agreement and losing your tenant will leave you with the question: how long will your property be vacant. So, you would rather lower or suspend rent payments for a certain amount of time. This especially applies to hospitality, restaurant, bar, and retail tenants.
And, how will the operating expenses follow the change in economy? Will the energy consumption go down as fewer people are going out to malls? Will insurance prices drop or increase? There are so many other scenarios to consider.
What all of that would mean for your cash flow? With Assetti’s budget option, you are able to create these different scenarios. You can have a scenario view that immediately shows the impact a lower income, a long-term vacancy or paused payments would mean for your annual cash flow and property´s financial performance.
Your Assetti’s team is here to help!
We are happy to help our customers in this situation. We want to provide new ways to handle their data management and provide better information for internal and external communication.
Whether you are in need of easy financial modelling, understandable KPIs for tenant risk management, or you would just like to just know more about what Assetti offers, our team is happy to help!
Germany
Anja Baum, Sales Manager Deutschland | anja@assetti.pro | +49 152 0144 3322
Finland, Scandinavia and overseas
Hannu Rantanen, Head of Sales | hannu@assetti.pro | +358 40 537 8722
UK and Netherlands
Ailey Irvine, Customer Specialist | ailey@assetti.pro | +358 50 555 3998
