19 Sir Laurence Drive, Seaford

Background

Our client owned two large modern factories and when the insurance came up for renewal Nichols Crowder discovered they were grossly under insured in all aspects. The Landlord had looked after the insurance himself and relied on the insurance company to cover the properties.

Our Response

Nichols Crowder consulted builders, revalued the properties and increased the insurance coverage and recovered the additional premium from the tenants.

The Outcome

The owners investment is now fully covered in every aspect and the owner is extremely grateful to Nichols Crowder diligence in uncovering what could have been a disaster in the future.

Key Factors

This is only one example of how comprehensive property management is essential in maintaining your Real Estate investment.  

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Lathams Road

Background

Our client owned and self managed four older style factories for many years and had a very hands on and sympathetic approach to management. Unfortunately the tenants were always in arrears and took advantage of the Landlords good nature.

Our Response

Nichols Crowder performed a Property Health check and discovered South East Water Rates had been incorrectly charged and the buildings were non-compliant with Essential Services.

The Outcome

From an extensive audit a refund of $8,610 was issued from South East Water. The Buildings were inspected and made compliant and all rents were brought up-to date.

Key Factors

The Buildings are now under a preventative maintenance scheme and the owners investment has been maximised and carefully managed.

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22 George St, Sandringham

Background

This large industrial property was self-managed and with a pending rent review the owner contacted us upon the realization it was may be more complex than first thought.

For a fixed fee the owner asked us to thoroughly look at the property and provide recommendations on the best steps forward. 

Our response

We explored all aspects of the property including land value, impact of rezoning, building, potential tenant and lease matters and provided a comprehensive yet straight forward report along with recommendations.   

We were then appointed to implement our recommendations.

Outcome

• An immediate rental increase from $92,000p.a to $146,000p.a
• We discovered the owner had not correctly collected GST and outgoings for six years.
• As such we collected $75,000 that the owner did not even know was owed to him. This was additional to a rental increase of $54,000 per annum.
• The value of the property notwithstanding the rental increase was 50% of the land value.  Once the decision to realize the property was made, we created an opportunity to sell the property with vacant possession.

The Sale

We developed a highly effective marketing campaign reaping over 62 enquiries which also won the REIV Marketing Effectiveness Award for campaigns with a budget of less than $20,000.

We sold the property at Auction for $3,570,000, which was $570,000 above Vendor's expectation.

What our client had to say

"I am very happy to say the support and guidance given to me by Matt Nichols and his team, especially on auction day was welcome and appreciated. Clearly the marketing and pre-auction effort by Nichols Crowder resulted in an excellent result."

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1 Taylor St Moorabbin

Background

The property is a two level office complex plus basement carparking and is owned by interests associated with one of Melbourne's most respected property personalities.

The property has been managed for several years by one of the big four CBD commercial estate agencies.  Investment performance suffered as a result of long term vacancies. 

The property is now 100% leased, income has increased 35% and the tenancy mix is significantly more diverse and robust.

Our response

We created a two pronged attack;

(i) Streamline service contracts by having one contractor providing multiple services, retendering contracts which created an immediate total outgoings savings equating to 20%.

(ii) The second approach related to both existing and prospective tenants.  By lowering outgoings tenants welcomed us and this led to a better understanding of the tenant's future plans. We had inherited considerable vacancy so we focused on preferred tenancy types for this building such as call centre, employment agencies, disabled persons agency and medical related uses.

The outcome

The property was approximately 70% occupied upon Nichols Crowder's appointment with two tenancies at short term risk.  The property is now 100% leased, income has increased 35% and the tenancy mix is significantly more diverse and robust.   Along with outgoing efficiencies we have improved the bottom line by 45%.

Key factors

Improved building maintenance and presentation, a strategic vision for the building and a focus upon and understanding of the local area were key factors in the turnaround.

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877 Nepean Highway, Bentleigh

Background

The property had been managed many years by a residential agent. A vacancy of one small showroom was looming and the property income was the only source of income for the elderly owner. We quickly released the property with no rental loss.

Our response

The owner decided they need a dedicated commercial agent who could source an appropriate tenant, ensure the premises, and make sure the new lease was on commercial terms and conditions. We also identified some maintenance issues that were easy to repair before a major issue could arise. We created a cost efficient marketing campaign to ensure the market was aware of the unique offering.

Outcome

• We coordinated the timing of the incoming and outgoing tenants so the owner had no days without rent being paid
• The rental achieved was at the upper end of market range and provided a rental increase of 10% over the previous rent

What our client had to say

"You have managed all our expectations and exceeded many. It is wonderful to be dealing with professionals".

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