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Even Commercial PMs aren't always the brightest crayon in the pack.

Discussion in 'Commercial Property' started by Scott No Mates, 14th Apr, 2016.

  1. Scott No Mates

    Scott No Mates Well-Known Member

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    I had to chuckle today when I reviewed an email from a commercial PM. (not just one PM but a PM, an administrator and an accounts department).

    One side was disputing the rent review mechanism (ratchet between CPI and market). Kept arguing it was the Lessor of Market or CPI. Doh! (This one was switched on).

    The other didn't know what a ratchet was or how to interpret it. They fessed up that they were new to commercial property.

    When pointed out the error of their ways, they calculated the CPI review - still had no idea so sought the assistance of the accounts department - wrong base dates and no idea how to adjust.

    We had to explain ie put all the numbers down in order of calculation so they could understand it.

    I printed the email as backup for a legal instruction - there were 8 pages!!! - I didn't see the whole story until I printed it, all I cared about was matching the result to the agreement and thought it would be simple (result was on the front page).

    I've got a sore head.

    Moral of the story - vet your PM for your CIPs.
     
    PacMan likes this.
  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I reviewed my lease but it was pretty gross so I stopped
     
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  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Quality of the industry is appalling
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    @D.T. - I must work with the wrong people - asset managers, portfolio managers and investment managers. This isn't the norm for major city property agents as their clients have high expectations.
     
  5. Chilliblue

    Chilliblue Well-Known Member

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    To many of the smaller agencies that use residential PM's for their commercial work so this type of problem is common - especially trying to work out CPI.

    That is why you and I @Scott No Mates are doing well.
     
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  6. Shady

    Shady Well-Known Member

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    Easy up Tiger. No need to paint everyone with the same brush. Most of us do know what we're doing :cool:

    CPI calculations, ratchet clause..Rocket science it aint.
     
    hobo, Full_House and Chilliblue like this.
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    It irks me when the pm issues a cpi review as a market review, wrong basis for determining cpi eg eight capitals vs Sydney or wrong date applied.