Within the association "BAMBI - Circle of Real Estate", Apleona Real Estate Management has developed a common Property Management Service Specification (LVPM) together with many market companions. The initiative was important because a standardised service specification had been lacking in property management until then and property management consisted of a jungle of individual regulations compared to other sectors. The goal was to establish uniform market standards and create more transparency for clients.
For Dr. Ralf Lehmann, Managing Director at Apleona Real Estate Management, on whose initiative the project was launched, common standards in property management for commercial real estate are long overdue. "Unfortunately, unclear terms and arbitrarily interpretable definitions of individual services all too often lead to fractious discussions and dissatisfaction in the customer-service provider relationship in day-to-day business." In contract negotiations, for example, much effort is often needed to clarify what is to be understood by a standard service and what is to be understood by special services that are to be paid for separately, because there are not, as in other sub-branches of the real estate industry, already comprehensive and accepted service specifications.
The service specifications list the services of seven property management modules in table form. The onboarding, commercial and technical property management, data management and reporting, support with lettings and sales, and finally the termination of contracts and an excursus on sustainability criteria ESG). The individual services are divided into basic services, optional services and special services.
The new list of services significantly reduces the effort involved in contract negotiations and disputes during ongoing operations as to which service is additionally billable or not.
"BAMBI - Circle of Real Estate" consists of a total of 27 investment houses and property management companies. The aim is to develop joint initiatives for the continuous professionalisation of the real estate sector in Germany. This involves the creation of market transparency, benchmarks, best practice approaches and the improvement of cooperation between market participants. The circle is supported by the commitment of the managing directors, board members and executives of the participating companies.
Further information
The standarised service specification can be downloaded here.