To better measure and compare the quality of their own service provision, nine major property management organisations and the Stichting ROZ Vastgoedindex have launched a pilot for a sector-specific benchmark in the Netherlands.
The new benchmark, to be introduced across the sector and widely used, is intended to contribute to a more transparent property market. Initially, the benchmark will be launched incorporating the following six indicators:
- Rent growth - indexation, rises, adjustment to market norms
- Rent payments - the speed with which rents are paid.
- Rent changes - number of changes and new rents
- Vacancy rates - levels and change in these
- Service costs - payment times and precision of advances
- Maintenance - costs versus budget
The project has been set up in association with Stichting ROZ Vastgoedindex because of the ROZ (Council for Real Estate Matters)'s long experience with setting up and developing benchmarks, both in the Netherlands with the ROZ/IPD property index and in an advisory level both nationally and internationally.
"This initiative is an important step in the further professionalisation of the sector," says managing director Eric Bakker of the property management department at CB Richard Ellis, one of the initiators. "This benchmark will contribute to a more transparent market as companies will be able to measure their own performance against that of others. It would be nice if the initiative could adopt an international character to have it respond to the needs of international property management."
Source: CB Richard Ellis