scholarly journals Service charge management at the dawning of the age of the professional statement

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Stephen Eccles
Keyword(s):  
Regulatory Regime ◽  
Sensitive Information ◽  
Property Management ◽  
Content Type ◽  
Code Of Practice ◽  
Service Charge ◽  
Management Consultancy ◽  
Valid Data ◽  
Research Questions ◽  
Charge Management

PurposeThe paper provides a snapshot analysis on the state of service charge management at the point in which its regulatory framework by RICS changed from a voluntary code of practice to a mandatory professional statement.Design/methodology/approachThe data consist of a unique eight-year longitudinal study of service charge statements and practice (2010–2017). Because of the confidential nature of such business-sensitive information, this is a priceless study of real-world practice over such a long period and is able to illustrate both annual compliance and the year-on-year changes. Given this, it is recognised that data are skewed in favour of compliance because they are derived from an actively managed portfolio.FindingsThe results continue to illustrate long-running problems of non-compliance with “required” metrics. Given the inherent bias in the data, this is especially difficult to excuse. The paper also analyses the results in the light of the new RICS professional statement, which requires mandatory compliance. Whilst some of the metrics are advisory, there remain questions over how RICS might realistically enforce so many practitioners to change their existing performance and how willing the institution might be to actually prosecute failure. It also revisits the issue of institutionalised benchmarking of standards. Intriguingly, there are islands of almost perfect compliance, which offers an interesting contrast and raises further research questions on why some practitioners provide such exemplary work.Research limitations/implicationsThe data are derived from the clients of a UK property management consultancy. This does preclude any randomness to the sampling. However, the richness of the data and the methodology adopted provide valid data.Originality/valueThis work offers both unique data and an eight-year longitudinal analysis, but also a timely comparison with the requirements within a new RICS professional statement. This shift in regulatory regime reinforces the value of the work.

Financial reporting for commercial service charges in the retail sector

2015 ◽  
Vol 33 (2) ◽  
pp. 152-172 ◽  
Author(s):  
Andrew Holt ◽  
Timothy Eccles
Keyword(s):  
Financial Reporting ◽  
Third Party ◽  
Retail Sector ◽  
Content Type ◽  
Reporting Practices ◽  
Code Of Practice ◽  
Reporting Requirements ◽  
Service Charge ◽  
Shopping Centres ◽  
Retail Shopping

Purpose – The purpose of this paper is to assess whether financial reporting practices for commercial service charges in the UK retail sector match the best practice requirements of the Royal Institution of Chartered Surveyors (RICS) Code of practice for commercial service charges. This assessment was performed by benchmarking commercial service charge documents provided to retail occupiers at UK shopping centres against the RICS Code’s financial reporting requirements. Design/methodology/approach – Data were generated from direct analysis of actual service charge documents supplied to commercial retail occupiers. This ensures authenticity by removing reliance upon third party reporting of said data. The paper uses a sample size that is representative of the financial reporting practices for commercial service charges at UK shopping centres. Findings – Levels of compliance with the financial reporting requirements of the RICS Code of Practice for commercial service charges are found to be poor, especially in terms of the disclosure of the accounting policies used during the preparation of the service charge accounts. These results contrast with claims by the professional body. Research limitations/implications – The work analyses service charge documents prepared during 2010-2012 by 44 managing agents and 87 landlords at 126 UK retail shopping centres located in Great Britain. Content analysis was utilised to interpret the data and required some subjective judgement by the researchers. Originality/value – Data are original and the paper provides a unique benchmarking test for assessing Code compliance. This contrasts markedly with the anecdotal evidence offered by the profession in defending current standards of practice and whilst the paper has limitations, it is the largest and most in-depth study of commercial service charge practices at UK retail shopping centres.

scholarly journals Leases as inhibitors of best practice in service charge management

2019 ◽  
Vol 37 (2) ◽  
pp. 275-286
Author(s):  
Andrew Derek Holt ◽  
Timothy Stephen Eccles
Keyword(s):  
Best Practice ◽  
Legal Framework ◽  
Content Type ◽  
Commercial Property ◽  
Code Of Practice ◽  
Service Charge ◽  
Practical Management ◽  
Real Estate Management ◽  
The Relationship

Purpose The relationship between the owner and an occupier of a commercial property is determined by the lease, inasmuch as it sets out the legally enforceable duties and obligations of each party. However, it is only that, a legal framework; it is not a practical management handbook on how best to operate the premises and generate an amicable business relationship. The purpose of this paper is to consider the role of the lease in reinforcing and disrupting the generation of best practice within real estate management. Design/methodology/approach The paper examines actual leases to understand the service charge and how data pertinent to it is collected, disseminated and interpreted by both parties in carrying out their activities within and about the property. This is then benchmarked against provisions of the Service Charge Code of Practice. Findings Despite a number of incarnations of a code of practice on service charges during the lifetime of the leases examined, the research finds a troublingly small uptake of its ideas within new leases. Practical implications The findings predict future problems in the practical management of multi-tenanted properties, coupled with a call that leases are written to the Code’s requirements. Originality/value No such lease examination has been undertaken to date.

Professional standards and accounting change

2015 ◽  
Vol 17 (3) ◽  
pp. 198-225
Author(s):  
Andrew Derek Holt
Keyword(s):  
Financial Reporting ◽  
Office Buildings ◽  
Professional Service ◽  
Content Type ◽  
Code Of Practice ◽  
Reporting Requirements ◽  
Service Charge ◽  
Shopping Centres ◽  
The Uk ◽  
Code Compliance

Purpose – This research aims to continue previous work by the author in the field of commercial service charge management in the UK, offering a unique cross-sectoral comparison in this paper. While prior studies have approached only one sector, this study analyzes both retail and office sectors in the UK. It examines the financial reporting and administrative practices of managing agents and the overall quality of commercial service charge documents, through which it offers commentary on the standard of professional service in service charge provision. It achieves this by benchmarking performance achieved against the accounting requirements of the UK RICS Code of Practice, Service Charges in Commercial Property. Design/methodology/approach – Data were hand collected from analysis of actual service charge documents supplied to commercial retail occupiers at 100 UK office buildings and 100 UK shopping centres during the period of 2010-2013. This process ensures authenticity by removing reliance upon third-party reporting of the said data and offers a uniquely detailed longitudinal sample. Findings – Overall levels of compliance with the financial reporting requirements of the RICS Code of Practice for Commercial Service Charges were poor in both sectors over the period of 2010-2013. Of specific concern was the widespread failure to disclose the accounting policies used during the preparation of the service charge accounts; knowing whether the accounts are prepared using an accruals or cash basis is essential for occupier decision-making purposes. Overall, the results from this study contrast with claims by the professional body that levels of “best practice” are increasing across the service charge industry. Research limitations/implications – The work analyzes service charge documents prepared during 2010-2013 for 100 office buildings and 100 retail shopping centres located in the UK. While the sample sizes utilized are relatively small, the paper provides a unique in-depth longitudinal analysis of commercial service charge documents that produces findings with high levels of generalizability. Content analysis was utilized to interpret the data and required some subjective judgement by the researcher. Originality/value – The study provides a comprehensive longitudinal study of accounting and financial reporting practices for commercial service charges in the UK retail and office sectors. Sector data are original, and the paper provides a unique benchmarking approach for assessing Code compliance at each building. This structured longitudinal approach to benchmarking differs markedly from the largely anecdotal evidence offered by the profession when defending current levels of Code compliance. In addition, the paper also provides individual compliance scorecards for 695 service charge documents in order to assess compliance with nine “core” financial reporting requirements of the RICS Code. Its chief value lies in establishing actual practice standards that can be taken up as a driver for improvement – by tenants, agents, landlords and the wider profession.

Commercial service charge accounting and audit: a review

Facilities ◽  
2015 ◽  
Vol 33 (7/8) ◽  
pp. 502-527 ◽  
Author(s):  
Andrew Holt
Keyword(s):  
Design Methodology ◽  
Best Practice ◽  
Inductive Reasoning ◽  
Theoretical Level ◽  
Content Type ◽  
Commercial Property ◽  
Code Of Practice ◽  
Guidance Note ◽  
Service Charge ◽  
Practice Framework

Purpose – The purpose of this paper is to critique the accounting and auditing requirements of the 2011 RICS Code of Practice, Service Charges in Commercial Property and examines whether the new 2014 version of the RICS Code and its associated accounting guidance note provide a “best practice” framework for service charge accounting and audit. This theoretical discussion is then applied to empirical data obtained from a sample of UK commercial office properties to assess whether current practices used by managing parties for the preparation and review of service charge reconciliation certificates actually embody the principles of best practice. Design/methodology/approach – The paper uses inductive reasoning to theorise about how the accounting and auditing of commercial service charges might be improved. The paper also uses a deductive approach to identify whether current commercial service charges accounting and audit practices achieve a theoretical level of best practice. The paper reviews a range of secondary literature and utilises hand-collected data from the service charge documents provided to commercial leaseholders. Findings – The paper finds deficiencies within the RICS Code’s requirements for service charge accounting and audit. As a result, empirical evidence is found suggesting that UK commercial service charge accounting and audit practices are inconsistent, lack transparency and provide poor levels of negative assurance for tenants. Research limitations/implications – Content analysis requires subjective interpretation on behalf of the researcher. Originality/value – Data are original to this research and provide a unique insight as to the accounting and audit practices used by facilities managers, managing agents, accountants and independent auditors within the commercial property sector.

SFC reminding sponsors of the need to adopt an attitude of “professional scepticism”

2017 ◽  
Vol 18 (3) ◽  
pp. 82-84
Author(s):  
Gareth Hughes ◽  
James Comber
Keyword(s):  
Hong Kong ◽  
Design Methodology ◽  
Regulatory Regime ◽  
Group Company ◽  
Content Type ◽  
Professional Skepticism ◽  
Company Limited ◽  
A Company ◽  
Practical Implications ◽  
Do So

Purpose To remind sponsors to adopt an attitude of “professional skepticism” in Hong Kong IPOs. Design/methodology/approach Explains the Securities and Futures Commission (“SFC”)'s sanction on BOCOM International (Asia) Limited (“BIAL”) as a sign of determination to hold sponsors to account as gatekeepers to the Hong Kong capital markets. Findings The SFC has reprimanded and fined BIAL HK$15 million for failing to discharge its duties as a sole sponsor in a listing application for China Huinong Capital Group Company Limited (“China Huinong”), a company established in the PRC. This substantial fine reinforces the need for sponsors to ensure that they fully and properly discharge all of their duties, and that they will be held responsible for any failure to do so, even if the listing is not ultimately approved. Practical implications If sponsors fail to fulfil the requirements required under the sponsors’ regulatory regime, the SFC will be proactive and impose tough sanctions, even if the listing application is eventually withdrawn or returned by the SEHK. Originality/value Practical guidance from experienced regulatory, financial and commercial dispute resolution lawyers.

Building maps: GIS and student engagement

2018 ◽  
Vol 35 (4) ◽  
pp. 9-12
Author(s):  
Emily McGinn ◽  
Meagan Duever
Keyword(s):  
Student Engagement ◽  
Digital Humanities ◽  
Design Methodology ◽  
Course Design ◽  
Project Planning ◽  
Central Concept ◽  
Content Type ◽  
Innovative Research ◽  
Research Questions ◽  
Tools And Methods

Purpose This paper aims to detail the use of ESRs ArcMap in the undergraduate history classroom, as an example of pedagogical inquiry and as a method for integrating digital humanities (DH) tools and methods directly into humanities research and pedagogy. Design/methodology/approach This class is an example of pedagogical inquiry and a method for integrating DH tools and methods directly into humanities research and pedagogy. Findings With this approach, students see the immediate application of DH to traditional humanities objects of study and aid these in the pursuit of innovative research questions and methods. Originality/value The use of DH in traditional humanities classrooms as a central concept with experts from the libraries integrated into course design and project planning is unique and is a model that could be implemented at other institutions.

scholarly journals ERP benefits capability framework: orchestration theory perspective

2018 ◽  
Vol 24 (1) ◽  
pp. 266-294 ◽  
Author(s):  
Amgad Badewi ◽  
Essam Shehab ◽  
Jing Zeng ◽  
Mostafa Mohamad
Keyword(s):  
Cost Effective ◽  
Organizational Capabilities ◽  
Erp Implementation ◽  
Content Type ◽  
Quantitative Studies ◽  
Financial Perspective ◽  
Complementary Resources ◽  
Benefits Realization ◽  
Research Questions ◽  
The Right

Purpose The purpose of this paper is to answer two research questions: what are the ERP resources and organizational complementary resources (OCRs) required to achieve each group of benefits? And on the basis of its resources, when should an organization invest more in ERP resources and/or OCRs so that the potential value of its ERP is realised? Design/methodology/approach Studying 12 organizations in different countries and validating the results with 8 consultants. Findings ERP benefits realization capability framework is developed; it shows that each group of benefits requires ERP resources (classified into features, attached technologies and information technology department competences) and OCRs (classified into practices, attitudes, culture, skills and organizational characteristics) and that leaping ahead to gain innovation benefits before being mature enough in realising a firm’s planning and automation capabilities could be a waste of time and effort. Research limitations/implications It is qualitative study. It needs to be backed by quantitative studies to test the results. Practical implications Although the “P” in ERP stands for planning, many academics and practitioners still believe that ERP applies to automation only. This research spotlights that the ability to invest in ERP can increase the innovation and planning capabilities of the organization only if it is extended and grown at the right time and if it is supported by OCRs. It is not cost effective to push an organization to achieve all the benefits at the same time; rather, it is clear that an organization would not be able to enjoy a higher level of benefits until it achieves a significant number of lower-level benefits. Thus, investing in higher-level benefit assets directly after an ERP implementation, when there are no organizational capabilities available to use these assets, could be inefficient. Moreover, it could be stressful to users when they see plenty of new ERP resources without the ability to use them. Although it could be of slight benefit to introduce, for example, business intelligence to employees in the “stabilizing period” (Badewi et al., 2013), from the financial perspective, it is a waste of money since the benefits would not be realised as expected. Therefore, orchestrating ERP assets with the development of organizational capabilities is important for achieving the greatest effectiveness and efficiency of the resources available to the organization. This research can be used as a benchmark for designing the various blueprints required to achieve different groups of benefits from ERP investments. Originality/value This research addresses two novel questions: RQ1: what are the ERP resources and OCRs required to achieve the different kinds of ERP benefits? RQ2: when, and on what basis, should an organization deploy more resources to leverage the ERP business value?

Exploring the motivations of tourism social entrepreneurs

2016 ◽  
Vol 28 (6) ◽  
pp. 1137-1154 ◽  
Author(s):  
Ziene Mottiar
Keyword(s):  
Social Entrepreneurship ◽  
Design Methodology ◽  
Local Community ◽  
Positive Impact ◽  
National Strategy ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Key Informant ◽  
Research Questions ◽  
Tourism Destinations

Purpose The purpose of this paper is to examine the motivations of social entrepreneurs. It explores the case of the Gathering in Ireland in 2013, when against a backdrop of recession, the national Government encouraged individuals and communities to organize events and invite the Diaspora to visit Ireland as a way of helping the country to revitalize. Some 5,000 events took place across the country during the year, and this paper examines this in the context of social entrepreneurship. Three research questions are posed: Who were these tourism and social entrepreneurs who organized events as a result of the Gathering? What motivated them to engage in these activities? Will this social entrepreneurship activity be maintained beyond 2013 and how has it been impacted by the Gathering? Design/methodology/approach The empirical research was conducted in two counties in Ireland, Co. Kerry and Co. Westmeath. The research tools used were key informant interviews, a survey of event organizers and focus groups. Findings Key findings show that the Gathering has resulted in the emergence of new social entrepreneurs, but it has also had a positive impact on those who had run their events before, as it made them be more strategic in the way they planned and ran their event and also resulted in them thinking about these events in terms of tourists rather than just the local community. They also developed new skills which will aid their future development. It is clear that social entrepreneurs can play a fundamental role in the development of tourism destinations, and this is an important topic for researchers in tourism to be concerned about. Originality/value The originality of this paper lies in the fact that it addresses the issue of motivation of social entrepreneurs and challenges us to think more about how these types of entrepreneurs identify the problem that they will address. Furthermore, this case shows that the motivation for such action can be prompted by a national strategy, rather than as the literature heretofore represented it as an innate motivation that materialized and developed within particular individuals.

On the Property Management Services Ordinance of Hong Kong: concerns and implications

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Philip Wong ◽  
Joseph Lai
Keyword(s):  
Hong Kong ◽  
Common Law ◽  
Self Regulation ◽  
Policy Formulation ◽  
Property Management ◽  
Content Type ◽  
Freedom Of Contract ◽  
The United Kingdom ◽  
Potential Problems ◽  
Management Services

PurposeThis paper aims to examine the concerns and implications of the recently enacted Property Management Services Ordinance (Cap. 626) (PMSO) of Hong Kong.Design/methodology/approachA review was undertaken to identify the characteristics of the property management-related legislation of common law jurisdictions similar to Hong Kong, which include Australia, Canada and the United Kingdom. Then, the development of the property management-related ordinances in Hong Kong and the key features of the PMSO were examined. Finally, a case study was conducted to demonstrate the potential problems of the PMSO.FindingsThere are various kinds of legislative controls on property management services in the above common law jurisdictions. The PMSO, which is the first to regulate property management services providers through a licencing system and introduce control on training and professional development, imposes limits on freedom of contract and self-regulation of professionals. Potential problems with the implementation of the PMSO are also revealed.Research limitations/implicationsThis research analyses four common law jurisdictions. Property management services contracts in these jurisdictions are subject to governance by their case laws and market operations.Practical implicationsBy virtue of the new licencing system of the PMSO, property management services contracts in Hong Kong become a new kind of specific contracts.Originality/valueThis paper illustrates the relationship between freedom of contract and public benefit. It contributes knowledge to the area of government policy formulation in property management.

Changing brands and impacts on Las Vegas: messages for Asian gambling destinations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lynn Marie Jamieson ◽  
Brandon Douglas Howell ◽  
Carlos Siu Lam
Keyword(s):  
Success Factors ◽  
Las Vegas ◽  
Time Frame ◽  
Business Strategies ◽  
Property Management ◽  
Structured Interviews ◽  
Content Type ◽  
Site Analysis ◽  
Market Strategies ◽  
Insight Into

PurposeThe purpose of this study was to discover, qualitatively, periods of involvement in Las Vegas gambling marketing campaigns and analyze success factors that may be useful to other gambling destinations, particularly in the Asian market.Design/methodology/approachThe study was established to allow a two-pronged approach of semi-structured interviews and site analysis coupled with review of planning and marketing documents in Las Vegas, Nevada 1980–2000 era and ending with the 2019 branding approach.FindingsResults revealed degrees of success and rationales for changes in campaigns over a 40-year period. When analyzing market strategies, it became evident that many factors were involved decisions to visit Las Vegas, such as social, safety and security factors, as well as opportunities for recreation.Research limitations/implicationsGaining access to top level executives proved challenging due to reluctance of subjects wanting to disclose business strategies.Originality/valueThis study was unique in employing qualitative processes to elicit planning and marketing approaches and relative successes or failures from those involved in multi-property management. Further, analysis of documents over a wide time frame provided insight into the pitfalls and strengths associated with various campaigns.

Sign in / Sign up

Export Citation Format

Share Document