Investor info - tell potential buyers the key things they need to know

Every investor or home buyer, or potential home buyer, has surely encountered the same problem; there is an interesting home in the pipeline, but you are faced with a phone call from a property manager who may or may not know directly what is important to raise investor interest:
- What is a housing company's bookkeeping approach to dealing with financial charges for major renovation projects, funding or revenue recognition?

-What are the rules of the house for Airbnb accommodation?
-Is there anything else to consider that could positively (or negatively) influence investor interest.

All these things can easily be put together in a single document, which would be agreed by the board of the housing association. No new rules would be invented here, but it would be an informative paper for investors and buyers, bringing together the decisions taken by the general meeting that would increase investor interest and make the housing company more transparent and attractive to buyers.

Funding or monetisation?

This eternal question on the accounting treatment of financial charges for major renovation projects can of course be found quickly and easily in a company's profit and loss account or balance sheet. As a rule, housing companies enter financial charges in the balance sheet, but if they are entered in the profit and loss account, the investor can deduct them from the rental income for tax purposes. This information should already be available to real estate agents so that the answer can be found quickly when asked.

Airbnb and other short-term accommodation

Another important issue of interest to the investor is the housing association's position on short-term accommodation the so-called Airbnb business. If the housing company has taken a position on the issue, it is a tedious task to search for it in the minutes of the general meeting, and even in the annual report it is correctly only in the year in which the issue was decided and aligned. Therefore, recording the issue on a separate piece of paper and handing it over with the other management papers at the time of the sale would make the work of all parties easier.

For short-term accommodation, it would be good to include in this decision.

• What the articles of association say, in new housing companies this information may already be in the articles of association
• Compliance with the rules of the building society's code of conduct and related guidance
• Recycling and waste treatment
• Water consumption

The aim of providing additional information and input is to ensure that the responsible investor and the housing company work together. The highest possible return for the housing company can only be achieved through responsible action. No one wants to live in a bad, poorly managed, untidy and unruly housing association.. The maintenance and upkeep of the building society is a matter for everyone.

In summary

• The investor guide can be used as part of the sale of the property, given to the estate agent at the time of the sale or distributed by the property manager to those who want it.
• A free-form document signed by the Board of Directors (both the financing/distribution and the rules of procedure are, of course, decisions taken separately by the General Assembly).
• To summarise in one clear and concise document what the basic principles are in a housing association.
• Does not create new rules