The problems with any property in distress are often similar. Cash leakages are a principal cause of pain.
For example, when we took over a retail centre in the North of England, our analysis indicated that certain elements of income fluctuated despite no change in occupiers.
On investigation of the current system for rental collections, we discovered that cash was being collected and banked and then invoices raised based on what had been banked.
As the income banked matched the invoices raised in every case, this did not flag up any arrears.
Turning loss into profit
We immediately put new procedures in place and the income fluctuations stopped, with occupiers paying the correct amount as per their legal agreements.
The landlord could see via our reporting system when occupiers paid, how much they had paid and if they had not paid in full. Also, what recovery action was being taken.
Analyse the problem to solve it
This is a good example of the process we adopt on every instruction to analyse what is currently happening, identifying what should be happening and putting procedures in place to ensure payments are received on time and in full.