Cash Flow

The very wording of cash flow does imply that it always comes in, only to flow out again. Sometimes it seems that the ebb is greater than the inflow.

Three years ago, commercial agents usually got paid on completion of either the sale or lease. Nowadays, banks have a claim on the whole sale proceeds and with leases, there are such large rent free periods that there are no funds to pay the poor agent.

Most of the services that we provide, such as Rating Appeals, Valuations or even Dilapidation work provide a steady income flow down the line for the client. However, there is little up front cash generated and so no funds to pay.

These adverse conditions are making it very hard and we, as property agents, seem to spend an increasing amount of time chasing and collecting money.

Now I accept we are not the most popular sector of the economy, but our input is crucial and I am looking forward to the economy picking up so we can concentrate more on generating fees than having to remind clients to pay them.

I think that there are definite signs of matters picking up. We are experiencing a busier January than we have in the last two years and there are signs that people are deciding to 'have a go'. If the rents are fair and the leases reflective of market conditions, we seem to be able to get the deals together.

Sales, on the other hand, are still dire. If you want to give it away, it will sell. Otherwise don't bother...

...unless, of course, you have something equally cheap to buy. Then you are no worse off.