An Essential Basis for Effective Asset Management
In Practice, it’s clear again and again: The quality of the data maintained in property management is THE crucial foundation for successful asset management. Accurate and reliable data serves as the basis for effective control, transparent communication with investors, and ultimately for the long-term success of the property.
Lease Agreements: Accuracy from the start
The starting point is always the lease agreement. Only when this document is fully and accurately transferred into the ERP system can deadlines, indexation clauses, and individual agreements be reliably monitored. Errors or gaps in this process often lead to avoidable financial disadvantages:
• Opportunities for rent increases through indexation clauses remain unused,
• the negotiating position with existing tenants is weakened,
• deadlines are missed, potentially leading to financial losses and legal risks.
Service Charges and Reporting: Transparency Requires Structure
Accurate documentation of lease provisions relating to operating expenses is equally critical. Only when responsibilities are clearly assigned and aligned with accounting can service charge statements be prepared accurately and on time – an often underestimated factor for tenant satisfaction and liquidity management. In addition, ongoing reporting and reliable forecasting of the recovery ration depend on high data quality.
Transactions: The Relevance of Data Quality
In the context of a sale – for example, during a portfolio exit – complete and well-structured data becomes one of the most important prerequisites for a smooth transaction process. Incomplete documentation, unclear account allocations, or chaotic tenant records can cause delays and price reductions during due diligence.
Our Advice: Management Begins with Clarity on Processes and Responsibilities
One might assume this is all well-known and no longer an issue in today’s world of advanced systems and tools. However, our experience often tells a different story: missing documents, unorganized tenant accounts, incomplete data maintenance, deadline chaos, invoice confusion, etc. In most cases, the failure of effective property management is not due to a lack of willingness—but to unclear interfaces and expectations.
We therefore recommend defining the following points together with the property manager right at the start of the mandate:
• how the onboarding of a new property or portfolio is to be structured,
• who is responsible for which data and processes,
• and in what format and frequency communication will take place.
Regular coordination – ideally with the involvement of operational teams – helps identify optimization opportunities early on and continuously improve collaboration.
Our Conclusion
High data quality is not a “nice-to-have,” but a key success factor in professional asset management. Those who get it right benefit in multiple ways: through efficiency, transparency – and ultimately, better results.
Feel free to reach out – we’re here to support you with our experience and a focus on what matters most.
