A professional property investment requires a sound investment analysis, with a good chart of accounts. The investment analysis produces indicators which enable the investor to optimise return and expenditure. They include:
- Expenditure
- Incidental expenses
- Maintenance costs
- Extensions by the landlord that add to the general value
- Administration costs
- Liability reserves
- Vacancy rate
- Refurbishment, renovation and conversion costs
- Re-letting costs or increase in indebtedness as a result of rent reduction for occupancy during renovation works.
- Return
- Assignments or granting of rights to neighbours, possibly in return for accepting advantages to the detriment of the adjoining property and so on
- Easements
- Utilisation transfers (utilisation reverse)
- Inclusion of non-recurring items (e.g. compensation for granting an easement to erect a mobile radio antenna), which could even result in a lower selling price
- Assignments or granting of rights to neighbours, possibly in return for accepting advantages to the detriment of the adjoining property and so on
