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The Risks Of Working With An Inexperienced GP Surveyor
Just because there are quite literally thousands of surveyors in business up and down the United Kingdom does not mean that all of them are offering the same quality of service. On the contrary, in fact, as when compared like for like the differences in terms of service quality, value for money and general benefits for the client in question really are as clear as night and day.
The simple fact of the matter is that the GP practice is unique in so many ways. Working with a specialist GP surveyor really is the most prudent option available to GP practice managers when they seek to engage the services of a surveyor. At the same time, they also need a surveyor with a solid amount of experience in the relevant area. To work with a highly experienced and capable GP surveyor is to gain access to a valuable and independent resource, the likes of which can be used to drive profitability and minimise loss. Similarly, engaging inexperienced or generally substandard GP surveyors has the potential to steer the business in entirely the wrong direction in a number of ways.
Here’s a quick overview of just a few examples to illustrate the point:
1 – Inaccurate Overall Property Valuation
There are a number of reasons why it may be necessary to arrange for the GP practice itself to be professionally valued. It could be for the purposes of taking on a new partner, or perhaps the owner(s) of the property are considering selling the place or they may be giving thought to entering into a sale and leaseback agreement. In all such instances, it is of critical importance that the valuation be carried out with complete and total accuracy, in order to ensure that the property owner receives the full value of the property. Given the fact that the GP practice business is entirely unique for a number of reasons, this is the kind of job that can really only be carried out by those with plenty of specialist knowledge and experience. To work with an inexperienced GP surveyor is to run the risk of the GP surgery as a whole being dramatically undervalued – the consequences of which are self-explanatory.
2 – Pharmacy Rent Payments Too Low
Carrying out regular GP surgery rent reviews for third-party service providers is of the utmost importance when it comes to maximising income. Thousands of surgery owners up and down the United Kingdom rely on the income generated by renting surgery space out to pharmacies, dental practices, shops and a wide variety of other third-parties. However, research has shown that a great many GP businesses and property owners are not charging nearly as much as they could be when it comes to monthly rents. Some enter into less-than-ideal contracts in the first place having been provided with poor advice, while others do not give appropriate consideration to periodic rent increases at the rent review. The simple fact of the matter is that without the advice and assistance of those who specialise in such matters, it can be extremely difficult to successfully negotiate appropriate and fair rents.
3 – Insufficient Rent Reimbursement
Another potential risk associated with inexperienced GP surveyors is that of not being appropriately reimbursed for the GP surgery itself. Evidence suggests that a striking number of GP practices up and down the country are needlessly overpaying having failed to properly negotiate the rent reimbursement they are entitled to. When the required review of the NHS reimbursement rent has been assessed by the District Valuer on behalf of NHS England, it can be extremely difficult to renegotiate the decision reached without professional help. This means calling on the expertise of those who have plenty of relevant experience.
4 – Poor Advice on Expansion
There is so much to take into account when it comes to planned expansion works, new surgeries proposals or the opening of an additional practice location that doing so without professional advice and assistance can be borderline impossible. From feasibility via a Project Initiation document and through the different stages of business case approval required by NHS England and the CCG, to profitability and the project management of new surgery proposals, these are the kinds of instances in which poor advice or no advice can be extremely costly.
5 – Long-Term Strategy Misdirection
Last but not least, a highly-capable and experienced GP surveyor can offer the kind of impartial and specialist advice that can help those in the GP business build highly effective long-term strategies for their businesses. This will include maximization of income from practice premises, advance retirement planning and the consideration of sale and leaseback options and it more often than not takes the input and expertise of an experienced third-party to gain a deeper understanding of the options available.