Asset and Property Management Software

CAM

Service Charge Payable

This module assists corporate occupier tenants in reconciling the service charge their landlords ask them to pay. It produces a reconciliation of the service charge to ensure that the landlord is calculating the correct on account and balancing payments, providing an audit trail of the calculation. It also highlights any major variances year on year for budgets, or within the period
for actuals against budget that may indicate something outside of the ordinary has occurred. This may trigger the tenant raising a query with the landlord, ultimately requesting that an audit is performed of the landlord’s accounts to validate the accuracy of the charges.

Horizon assists the tenant in preparing a reconciliation statement by modelling the heads of expenditure the tenant is contracted to pay, the percentage share, any caps and floors that have been negotiated and any associated management fee. The budget and actual cost for each head of expenditure can then be captured. This information is recorded for each service charge period, enabling comparative analysis to be carried out and variances outside a designated tolerance to be highlighted.

It is possible that several statements may be received from the landlord in a given year, each for a different type of expense recovery, e.g. service charges, insurance. Similarly, in Horizon it is  possible to record information relating to these separately for each period, so that they can be reconciled independently.

Service Charge Receivable

This module enables the easy and effective management of service charge for your property portfolio. Each property’s service charge rules can be modeled within the system. Multiple schedules can be created and apportioned between the property’s units on either a weighted floor area or percentage split basis. Service charge caps or floors negotiated with the tenant can be reflected through lease rules; these can optionally be indexed and modified year on year. Interfaces to and from spreadsheets enable annual budgets to be quickly and easily entered into the system and allow data to be extensively modelled for each new year.

Reports allow analysis of actual against planned expenditure throughout the course of the year, enabling effective cash flow management, and online reconciliation. These reports also analyse the vacancy cost for the service charge year to date, identifying both the amount of irrecoverable costs
associated with the property and the reason for that cost. Horizon supports the latest RICS service charge guidelines, and allows detailed analysis of all costs managed within the service process, with three levels of analysis allowing cost trends between and within years to be tracked and a full  analysis of costs provided to tenants.

Features Include:

  • Ease of service charge preparation for a newly acquired property
  • Multiple recovery methods (service charge, insurance, utility rates
    etc.)
  • Incorporation of specific tenancy rules (caps, floors, fee caps etc.)
  • Spreadsheet links to ease budget creation
  • Automatic links for upload of actual expenditure from Horizon Accounts Payable or external General Ledger
  • On actual and on account recovery
  • Flexible management fee calculation
  • Detailed analysis of costs and void cost for each service charge period

For any questions please call 610 431 9080 or email marketingUS@qubeglobal.com