Service management involves selecting, instructing and monitoring service providers, whether they are agents employed on a permanent basis to provide commercial and technical support such as property management companies, concierge companies and cleaning firms, facility management or whether they are property and building advisers that are only consulted as and when needed, such as lawyers (e.g. to resist dispossession, implement building projects (project management, negotiating and drafting a total solution provider agreement or general contractor agreement as well as an architect’s agreement, service agreements with contractors and so on), disputes with neighbours, tenant evictions, termination of tenancies before embarking on conversion projects or negotiations with lenders etc.), property valuers, Building experts for property optimisation, architects and so on.
The investor is frequently faced with the question as to whether he should have his own property team or pay for the services of an external team. The following differentiation may be a practicable approach:
- Core services
- Services that are suitable for outsourcing