PROPERTY MANAGEMENT ACCOUNTS (PMA)

When owning any property there will be ongoing running costs. Blueforces provide a management scheme that allows the property to be run separately from your day to day finances. Blueforces operate a central, interest bearing account for you. This account receives rent and pays all the bills including your mortgage. This account is called your ‘Property Management Account’ (PMA).

The account is reviewed on a regular basis and should surplus funds build up, above the amount required to cover running costs and unforeseen expenses, your contribution can be reviewed. Funds in the PMA remain your money at all times; however, not holding reserve funds in this account will not allow Blueforces to manage the property properly.

Blueforces calculate the estimated annual cost of running the property including mortgage costs, insurances and maintenance. Where the rent is not sufficient to cover these costs, you pay a monthly top up contribution to your PMA.

PMA Example

Income

  • Rent – Monies collected from your tenant
  • Interest – Any interest earned on PMA balances
  • Your Monthly Contribution – Difference between rent and costs

Costs

  • Mortgage – loan taken out to buy property.
  • Life Assurance – insurance protection to pay off the mortgage loan should you die. This policy has no global or war risk restrictions. Only those actually on operations, or under orders to go on certain operations at the time of application, may suffer an increased insurance premium until they return. Those not under orders at the time of acceptance suffer no increased premium if subsequently deployed.
  • Building & Contents Insurance – if you have a mortgage the mortgage company will insist that you insure the building. If the building is ‘Leasehold’ (like most apartments) the ‘Freeholder’ will be responsible for insuring the whole building. Minimal Contents insurance will be required if letting your property unfurnished.
  • Unlet Fund – Commercial insurance has not proved viable so Blueforces scheme requires self insurance against gaps between tenants. At the time of purchase one months rent is added to your purchase costs which is then transferred to your PMA. During the first year scheme costs allow for the build up of a 2nd months rent, providing reserve unlet funds of 2 months rent.
  • Rent Protection Scheme – protects the Landlord against the tenant defaulting on their tenancy agreement. It covers malicious damage and unpaid rent up to vacant possession.
  • Maintenance Fund – Although most property purchased for servicemen is brand new and under builders guarantees, annual maintenance budgets are agreed at outset. Those funds remain in the interest bearing account as a cushion against future expenses.
  • Property Management Fees – Blueforces run all property management services from its central office but appoints a local manger to find tenants and subsequently manage your property. The management fee will be a percentage of monthly rent collected.
  • Ground Rent and Service Charge – Charges levied by Freeholders of leasehold property; for rent of the freehold, maintaining grounds and communal areas.