Losing the thread - a saying that probably comes from weaving: a lost thread primarily means a loss of time. In the housing industry, however, there is one field in which the threads have become so tangled that not only time but also cash flow is lost from the properties, thus reducing the value of the building. This refers to the field of metering service providers for heating cost billing. This is because apartment owners generally work with a large number of different partners who have often been added to the portfolio over the years through property acquisitions with their existing individual service contracts.
Untangling the threads with remotely readable meters (smart meters) and co.
So it gets confusing: Are heating costs really billed everywhere by all service providers based on consumption? Has the deadline for installing remotely readable meters (smart meters) been missed somewhere? Is the landlord's obligation to provide his tenants with monthly consumption information complied with as soon as smart meters are installed? Are the carbon dioxide costs correctly split between landlord and tenant? In the cases mentioned, the law allows tenants to reduce their service charges by up to 24 percent in total (flat rate!) if the manager does not fulfill their obligations in this regard. Logically, fewer non-allocable ancillary costs mean less cash flow - and therefore a loss in value of the building.
Framework contract instead of individual contract
In order to ensure simple quality monitoring even with scattered apartment portfolios, it is advisable to replace the confusion of countless individual contracts with framework contract partners. The bundling effect reduces the administrative effort for the owner. In addition, the larger contract volume compared to the previous individual contracts makes it relatively easy to implement the owner's interests and save costs. It is important to structure the framework agreements openly so that services from third-party companies are automatically integrated in future property purchases after the existing contracts expire - and there is no risk of losing the thread again.
All sides benefit - including the tenant
Incidentally, framework agreements also help the tenant. In the tenders that we have accompanied, it is not uncommon for tenants to achieve astonishing savings of 20 to 30 percent in the apportionable ancillary costs. A clear, positive sign for tenants: As owners or managers, we strive to find solutions that help everyone.