New legislation and an increased focus on best practice are leading to heavier workloads and excess pressure on property and facilities managers, according to a new report from health, safety and property compliance firm William Martin. When compiling its first annual property compliance report, the firm examined data from 20,000
Yesterday the Bank of England (BoE) has announced its decision to hold interest rates at 5.25% for the sixth time, remaining at the highest level for 16 years. This decision, although expected, will have significant implications for the construction industry. No indication was given that rates are set to be
Opportunity Mid Sussex, the inward investment platform of Mid Sussex District Council, will promote 70 hectares of employment space at one of the UK’s premier real estate, investment, and infrastructure shows. Representatives from Mid Sussex District Council will attend UKREiiF in Leeds from 21-23 May 2024 to promote and showcase
The North of England contractor has been appointed across all lots tendered which includes infrastructure, treatment and environmental schemes. Northumbrian Water has named Esh Construction as an ‘ecosystem partner’ for a new framework that will support the delivery of the AMP8 capital investment programme. Esh Construction has been appointed to
A star of the BBC’s DIY SOS programme will be joining one of the Actis team and other industry specialists at an open day to mark the 50th anniversary of timber frame company Scandia-Hus later this month. Electrician Billy Byrne, who has featured in the popular TV show since its
Former and current military personnel are being encouraged to embark on a career in sustainable home refurbishments as the Ministry of Defence (MOD) offer credits for courses from the UK’s driving force in retrofit skills and knowledge. Funding for accredited retrofit training and qualifications from The Retrofit Academy has been
Monkwearmouth Development (MDL), a Joint Venture between Sir Robert McAlpine Capital Ventures Limited (SRMCV) and Argon Property Development Solutions Limited (APDS), with funding from Railpen, have handed over its first development to NTW Solutions Ltd at Monkwearmouth Hospital in Sunderland. Located within the grounds of the existing hospital, the new
The Chichester depot of Covers Timber & Builders Merchants is continuing its sponsorship of the city’s vibrant and inclusive Pride event for the third consecutive year. Taking place on Saturday 25th May, Chichester Pride promises to be a celebration of love and diversity, welcoming the LGBTQ+ community and allies for
Protecting your business from workplace fires starts with you. As a business owner or manager, the onus is on you to understand the fire risks your company faces. If you do not know where to start with this mammoth task, guided fire safety resources will help you come up with
For property owners, maximizing the value of their investments is crucial. One way to accomplish this goal is through a cost segregation study. Cost segregation is a process of identifying and reclassifying certain assets to accelerate tax depreciation. This technique is commonly used in real estate and comes with significant
New legislation and an increased focus on best practice are leading to heavier workloads and excess pressure on property and facilities managers, according to a new report from health, safety and property compliance firm William Martin. When compiling its first annual property compliance report, the firm examined data from 20,000 risk assessments and survey reports that were uploaded to its compliance management software, Meridian, between April 2023 and March 2024. Figures showed almost 327,000 health and safety actions were raised across all disciplines, a 22% increase on the previous year. Commenting on the increase, Phil Jones, Managing Director at William Martin said: “The property and facilities management industry shoulders a huge responsibility when it comes to upholding the highest standards of health and safety. Alongside the introduction of recent laws such as the Building Safety Act 2022, we’re undoubtedly seeing a far greater focus from organisations on ensuring best practice and continuous improvement, rather than just compliance. “I’ve always believed that abiding by legislation should be the minimum benchmark rather than the final goal, so this positive step towards safer working environments is something I welcome. However, the downside is the extra pressure this is putting on those responsible for health and safety, due in no small part to the increased reporting that’s required to demonstrate high performance. But because abandoning best practice is not an option, this is something the industry needs to find a way to deal with.” Beyond this headline increase, the report identifies 10 key health and safety trends, which include: Phil Jones added: “Workload burdens are undoubtedly contributing to some of the more worrying trends identified in our report, such as the unacceptable length of time it’s taking to address Priority 1 actions, and poor record-keeping around lift safety. “Tech and AI can form part of the solution, by reducing the scope for human error, and reducing the chances of risks being missed or reports being misfiled. Using tech to work smarter rather than harder also frees up time to focus on the activities that will actually drive change and reduce risk. “The key trends and insights contained in this report will hopefully inform property and facilities management professionals on what should be the key focus areas within their own businesses. We are already planning to publish this data annually, which will enable longer term industry trends to be identified.” The full report is available to download from the William Martin website here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Yesterday the Bank of England (BoE) has announced its decision to hold interest rates at 5.25% for the sixth time, remaining at the highest level for 16 years. This decision, although expected, will have significant implications for the construction industry. No indication was given that rates are set to be cut later in the year, although the BoE Monetary Policy Committee (MPC) said it would ‘consider forthcoming data release and keep under review how long Bank Rate should be maintained at its current level.’ Richard Beresford, CEO of the NFB commented, “The decision by the Bank of England to maintain interest rates continues to hinder productivity and economic recovery. Due to the size and nature of works, the construction industry relies on borrowing and financing for projects, and high interest rates can hamper its ability to secure strong pipelines of work and invest in growth. This announcement comes at a time when construction already faces considerable challenges in material inflation, planning delays, and energy costs. We, therefore, urge the Government to deliver greater strategic reform in planning, procurement, and regulation to ease these difficulties and create a favourable environment that allows our sector to drive investment, growth, and UK productivity. Building, Design & Construction Magazine | The Choice of Industry Professionals
Opportunity Mid Sussex, the inward investment platform of Mid Sussex District Council, will promote 70 hectares of employment space at one of the UK’s premier real estate, investment, and infrastructure shows. Representatives from Mid Sussex District Council will attend UKREiiF in Leeds from 21-23 May 2024 to promote and showcase the area to investors, building on the many strengths of the district and the significant growth being delivered. The expert team will join industry leaders to talk about the opportunities for development in the district, take part in debates and network to effect positive change and generate further investment. Opportunity Mid Sussex is looking forward to letting investors and the Government know that Mid Sussex is open for business, that this is a council focused on positive change and delivering results. Mid Sussex is an ideal location for businesses to grow and flourish, with new employment space planned, fantastic landscapes in the Area of Outstanding Natural Beauty and National Park, and excellent transport links by rail, road, and air. This event will further put Mid Sussex on the map and showcase the huge potential for investment and growth that the region has to offer. With a cluster of businesses offering highly skilled work in sectors such as engineering and advanced manufacturing, MedTech, life sciences, Agri-tech, computer games development, multi-media software development, as well as e-commerce, financial and professional services, this is a fantastic opportunity for developers to create spaces for businesses to grow. In addition, a further 40,000m2 of employment space is now available at Panattoni Park Burgess Hill and ready for tenant fit-out, much of which is available for high value technology-led businesses. Panattoni, the largest logistics developer in the UK and Europe, said demand for the high-quality commercial space has already been strong and will be promoting the space at UKREiiF. David McGougan, Panattoni’s development director in the South East, said: “Our core business plan at Panattoni is to go into regions which are undersupplied with commercial property, especially in the South East. We saw there was an opportunity for us to speculatively develop this site to deliver much needed employment and space for businesses to grow. “Mid Sussex already has an existing industrial base and a very strong demographic in terms of availability of labour and excellent access to motorways. “It’s a great place to live and work. It’s close to both the seaside and the countryside, you’ve got the universities, plus cities and towns nearby to visit including London and Brighton which are both easily accessible by train. It has huge potential to grow.” Opportunity Mid Sussex will champion a total of 22 housing sites and seven employment sites, across the district, many of which are already in development and the allocation for a new Science and Technology Park when they attend UKREiiF. Businesses already based in the area include Swiss multinational healthcare company Roche Diagnostics, multinational engineering company Continental AG, which develops Advanced Driver Assistance Systems from its hub in Burgess Hill and Universal Quantum the groundbreaking quantum computing start-up that has chosen Haywards Heath as its HQ. Working in partnership with Homes England, the £1bn+ Burgess Hill Strategic Growth Programme in the heart of Mid Sussex is expected to deliver 5,000 homes and 15,000 jobs as well as major infrastructure improvements. It includes 25,000m2 of employment space, a Science and Technology Park in Burgess Hill, which will cost £250m to develop, providing 100,000m2 of employment space and 2,500 new jobs. The UK’s Real Estate, Investment, and Infrastructure Forum (UKREiiF) will take place in Leeds in May 2024. Opportunity Mid Sussex (OMS) will exhibit at the event, which draws over 10,000 attendees and 150 exhibitors, to highlight and promote the district. For more information, please visit: https://www.opportunitymidsussex.co.uk/ Building, Design & Construction Magazine | The Choice of Industry Professionals
The North of England contractor has been appointed across all lots tendered which includes infrastructure, treatment and environmental schemes. Northumbrian Water has named Esh Construction as an ‘ecosystem partner’ for a new framework that will support the delivery of the AMP8 capital investment programme. Esh Construction has been appointed to deliver across three lots within the ecosystem framework known as Infrastructure Civil Engineering, Treatment and Civils, and Civil and Environmental Engineering. The framework agreement, which runs for up to 12 years, will involve planned rehabilitation work and capital projects worth up to £5 million across Northumbrian Water’s water and wastewater network. The estimated value of the lots range from £0-£5 million to £20m-£40 million per annum. David Pratt, Divisional Director at Esh Construction, said: “Securing a place on the ecosystem framework builds on many years of successfully delivering repair and maintenance, planned rehabilitation and capital infrastructure projects on past and present Northumbrian Water frameworks. It is testament to the hard work of everyone involved that we can continue this collaboration and strengthen our pipeline of work by circa £25 million each year.” The introduction of the framework’s environmental lot for the first time provides an opportunity for Esh Construction to bring experience to the fore from similar projects in line with delivery requirements. A specialist drainage solutions division, launched in 2022, also bolsters Esh’s offering of CCTV and cleansing services as well as trenchless rehabilitation techniques, ranging from small diameter LED cured liners, to larger, structural UV cured liners. “Our proven ability to manage and coordinate these works has been strengthened significantly by our in-house team of specialist drainage operatives and bespoke vehicles which allows us to provide a complete approach to sewer rehabilitation alongside established delivery partners,” said Esh’s Frameworks Director, Norman Barnett. As a regional contractor committed to creating opportunities for new entrants to join the construction industry, Esh plans to grow its team of apprentices within the drainage sector following the latest award. After recruiting 12 last year, this year Esh’s focus will be to recruit Drainage Network Operatives, a brand-new apprenticeship specifically designed for working on the wastewater network. Barnett added: “Esh Construction is a regional contractor and this long-term framework will provide job security and career opportunities within our local communities, as well as investment with our local supply chain. We look forward to getting started.” The latest announcement concludes NWG’s procurement in preparation for its £3.6bn AMP8 capital investment programme. Earlier this year, Esh Construction’s joint venture with Stantec was named as a partner for the Living Water Enterprise which will deliver long cycle and higher complexity programmes. Building, Design & Construction Magazine | The Choice of Industry Professionals
A star of the BBC’s DIY SOS programme will be joining one of the Actis team and other industry specialists at an open day to mark the 50th anniversary of timber frame company Scandia-Hus later this month. Electrician Billy Byrne, who has featured in the popular TV show since its inception, will address a lunchtime champagne reception for around 250 guests at the Scandia-Hus show centre in East Grinstead on Saturday May 18. As well as having the chance to see a TV personality in the flesh, visitors will be able to discuss their projects and ask advice from the Scandia-Hus team and specialist suppliers whose products and expertise is used in the company’s various designs – including Actis South East and South London area sales manager Liane Bayliss. Scandia-Hus has used the Actis Hybrid range in all four of its show homes, with the grand opening of its latest design – a single storey 1,915 sq ft property, the Lodge – taking place at the event, with guided tours on offer throughout the afternoon. The three other Actis-insulated show homes will house materials suppliers and experts, with Liane on hand to chat to would-be Scandia-Hus customers and builders from the first floor of The Mulberry, where she will be stationed overlooking the dramatic double height sitting room. Find out more information about the open day here. Find out more about the latest Actis-insulated Scandia-Hus show home here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Former and current military personnel are being encouraged to embark on a career in sustainable home refurbishments as the Ministry of Defence (MOD) offer credits for courses from the UK’s driving force in retrofit skills and knowledge. Funding for accredited retrofit training and qualifications from The Retrofit Academy has been made available through the MOD’s Enhanced Learning Credits Administration Service (ELCAS) scheme. Ex-service and military personnel who are eligible for the scheme can apply for funding towards The Retrofit Academy’s full suite of training courses and qualifications, ranging from levels three to five, including the following: With over 400,000 retrofitters required to upgrade 27 million homes across the UK by 2050, this opportunity to start a career path as a qualified Retrofit Advisor, Assessor, or Coordinator is more accessible. Using skills learned from these courses, newly qualified retrofitters will be equipped to provide the knowledge that local authorities, social housing providers or their appointed contractors need to make the right decarbonisation upgrades to their building stock. This urgency to fill the growing number of green roles has accelerated following the government’s announcement of over £1.8bn in funding through the Social Housing Decarbonisation Fund (SHDF) and Home Upgrade Grant (HUG). With local authorities, housing associations and contractors receiving the capital injection to drive forward with retrofit programmes, ELCAS applicants can use funding to become qualified retrofitters and contribute to these projects. Once graduated from their course, they will also have access to the Retrofit Academy Careers Hub, a platform that brings new retrofitters together with the key employers across the UK. Here, the ELCAS graduates can access information about and connect with prospective employers, look for job vacancies and access knowledge resources and training opportunities. David Pierpoint, CEO of The Retrofit Academy, said: “With the growth of retrofit projects comes a need to address the acute skills gap and fill roles required to deliver success at scale. We are the Workforce Development Partner working with local authorities, housing associations and contractors, addressing the practical retrofit skills gap across the sector by determining how many new people are required to enter the industry to deliver successful retrofit at scale. “Being able to make our courses available through the ELCAS Scheme is one way we are working to bring more qualified retrofitters into the industry to develop a workforce capable of delivering high quality retrofit at scale. For eligible military personnel, there is no better time to join the retrofit industry as more and more job vacancies open up.” Ex-service and military personnel must first contact their MOD authorising personnel, or Single Service Representative for all out-of-service applicants, to establish their eligibility for ECL funding. This is unique to the individual and depends on factors such as their previous use of funding and length of service. For more information about The Retrofit Academy and their educational courses, please click here Building, Design & Construction Magazine | The Choice of Industry Professionals
Monkwearmouth Development (MDL), a Joint Venture between Sir Robert McAlpine Capital Ventures Limited (SRMCV) and Argon Property Development Solutions Limited (APDS), with funding from Railpen, have handed over its first development to NTW Solutions Ltd at Monkwearmouth Hospital in Sunderland. Located within the grounds of the existing hospital, the new modern fit-for-purpose building provides a welcoming, level and accessible front entrance to the main outpatient facilities. In addition to the new entrance and reception area, the new accommodation includes meeting rooms, flexible open-plan workspaces and breakout areas, and consultants’ offices on upper floors along with areas for their support teams to work in. The new building has created the perfect office environment for employees at the site and encourages collaborative working and support; all of which service users should benefit from. The building also houses a Changing Places facility, and the new ‘Café Bede’ community café is open to the general public, visitors, staff and service users across the Hospital. The new café includes areas for inside and outside dining and is home to a time capsule placed in the ground during the construction works; telling the story of the build, the history of the site and the previous building for people to read in years to come. Sir Robert McAlpine completed the construction of the 3,287 sq. m, three-storey building for MDL over 19 months with the facility achieving a Design stage BREEAM Excellent standard. In addition to a replacement tree-lined staff car park, the development delivers level access and a beautifully landscaped piazza area including seating and extensive planting, along with a memorial garden. The external works have transformed the previous parking area that fronts onto Newcastle Road and create better connectivity within the estate for hospital users, staff and visitors. MDL worked with NTW Solutions Limited, a limited company established by Cumbria, Northumberland, Tyne and Wear NHS Foundation Trust, to provide premises that will enable NTW Solutions to deliver improved facilities and a range of important services to the Trust. Cumbria Northumberland Tyne and Wear NHS Foundation Trust is one of the largest mental health and disability Trusts in England. Monkwearmouth Development Ltd is a Joint Venture between Sir Robert McAlpine Capital Ventures Limited and Argon Property Development Solutions Limited. It was appointed to this work through SRMCV’s place on the Pagabo Developer Led Framework, a nationwide procurement framework available for public sector organisations that focuses on delivering social value for each development. Building, Design & Construction Magazine | The Choice of Industry Professionals
The Chichester depot of Covers Timber & Builders Merchants is continuing its sponsorship of the city’s vibrant and inclusive Pride event for the third consecutive year. Taking place on Saturday 25th May, Chichester Pride promises to be a celebration of love and diversity, welcoming the LGBTQ+ community and allies for a day of live entertainment, food and drink, stalls, and family-friendly activities. New for 2024 is the introduction of the Chichester Pride Parade through the city centre which will officially open the festivities and promote the event’s core values of inclusivity, individuality, respect, and unity. Jonny Clines, Sponsorship Coordinator for Chichester Pride, commented: “The backing of local businesses like Covers Timber & Builders Merchants is crucial in ensuring the success and sustainability of Chichester Pride. Their continued commitment demonstrates a shared vision of creating a community where everyone feels valued and accepted. Building on the success of Chichester Pride 2023, we anticipate an even more remarkable celebration this year.” Henry Green, Managing Director of Covers, added: “Covers has long been committed to supporting local events and initiatives that enrich the lives of residents. Our sponsorship of Chichester Pride underscores our dedication to encouraging positive change and making a meaningful impact on the communities we serve. Our Chichester depot will be actively promoting what promises to be an unforgettable day of celebration and inclusivity.” Further information about Chichester Pride can be found on its website – https://www.chichesterpride.co.uk/. Building, Design & Construction Magazine | The Choice of Industry Professionals
Protecting your business from workplace fires starts with you. As a business owner or manager, the onus is on you to understand the fire risks your company faces. If you do not know where to start with this mammoth task, guided fire safety resources will help you come up with a fire preparedness plan. The best way to come up with a plan that works is to include tools, equipment, fire detection systems, and pre-and post-fire strategies. As we all know, prevention is better than cure. So, to start on your journey, you must learn how to stop fires from breaking out at your office or factory. Below are ten ways to help prevent fires in your workplace: 1. Hazardous Waste Hazardous waste must be properly stored and disposed of to prevent fires. Examples of hazardous waste materials can include oils and chemicals – and these must be disposed of in a metal container with a lid. All industries are different, and the fire requirements will vary from one to the next, so there are no universal laws for fire safety that can be applied across the board. Always keep hazardous waste separate from non-hazardous waste like paper or food. Use designated bins and containers and label them clearly. Be sure to empty these containers frequently and always avoid overfilling them. 2. Equipment Fire protection equipment such as extinguishers, hoses, and control panels must be easily accessible for every employee. All fire equipment must always be clean and dust or debris-free. Fire extinguishers are essential and must be positioned on escape routes and near all identified higher-risk areas. For kitchen and canteen areas, be sure to include fire blankets in your arsenal of fire equipment. Fire alarms and sirens provide early warning of potential fires, giving everyone enough time to escape before the fire spreads too far. 3. Frequent Maintenance All workplace fire protection equipment must be maintained and serviced regularly, keeping it up to code. Maintenance schedules must apply to all workplace equipment and machinery and not just fire protection equipment. Properly maintained machinery can prevent fire-related risks such as overheating and sparking. 4. Housekeeping Offices and storerooms must be kept clean and tidy. Where there is clutter, there are fire hazards. Paper, overflowing rubbish bins, and empty boxes are all flammable materials and will allow a fire to spread faster. Untidy offices can also result in blocked exits and tripping hazards in the event of an emergency. Keep your workplace clean and free from clutter. 5. Fire Shutters For some businesses, deciding to install a fire shutter can make all the difference in containing a fire and getting enough time to evacuate people from a building in an emergency. Fire shutters are a type of roller door that provides compartmentalisation to stop fires from spreading. Shutters can provide an extra 30 minutes to evacuate the building or factory, and that time is often the difference between life and severe injuries or even death. A fire shutter addition can save lives. 6. Safety Demonstrations Fire safety demonstrations are critical for teaching your employees the importance of fire safety. Demonstrations teach people how to respond or react to a fire, how to use an extinguisher and other necessary fire safety tips. The most crucial thing for employees to do if they spot a fire is to prevent it from spreading, but they first should be able to identify the risks involved before attempting to extinguish it. 7. Assign Roles If your organisation has not already assigned fire safety roles to ideal candidates in the workplace, that must be made a top priority. Your business should find someone to serve as a fire warden. The number of fire wardens a business needs will depend on how big the workplace is and the likelihood of a fire starting. The appointed fire wardens must have a clear understanding of what could cause a workplace fire, such as poor pallet racking, and conduct regular walkthroughs to assess fire hazards – among other tasks. 8. Smoking Areas Legally, a company does not have to provide a designated smoking area. If your organization chooses to do so anyway, the boundaries of such an area must be defined clearly. Designated smoking areas are often sheltered from the elements and as much as they may not seem like much, they must comply with planning guidelines and building regulations. Ensure all fire safety protocols are followed in the smoking area and provide ashtrays for safe cigarette disposal. 9. Evacuation Plans Emergency and evacuation plans are an absolute must-have. Every employee must know what to do in the event of a fire, who to call for help, and what to do next. It is easy for people to get scared and panic, but you must train your staff to remain calm and follow the fire protocols and processes. Fire prevention strategies are essential to stop fires from spreading, leading to untold amounts of damage and potentially injuring people. 10. Identify Risks There are safety regulations and laws put in place to prevent fires in the workplace. Both the NFPA and OSHA offer guidance for helping organizations plan their fire safety and protection strategies. Businesses must follow these guidelines and ensure that they comply with all fire standards and laws. Businesses need to train their employees to identify the most common causes of fires in the workplace. Some of these risks include cooking appliances, electrical equipment, and space heaters. To End By ensuring that your business has training, supplies, and equipment addressing workplace fires and hazards, you will have already taken the first step in protecting your employees and your buildings. These ten tips above will help to prevent a fire from breaking out or spreading in your workplace. No one knows precisely when a fire will spark, but having a plan ready for when it does can mean everything at the end of the day. Following these tips above will help to create a safer work environment for everyone in the building.
For property owners, maximizing the value of their investments is crucial. One way to accomplish this goal is through a cost segregation study. Cost segregation is a process of identifying and reclassifying certain assets to accelerate tax depreciation. This technique is commonly used in real estate and comes with significant advantages for property owners. Herein below we discuss the most important aspects of the cost segregation guide for real estate. An Outline of Cost Segregation: Cost segregation is a strategic tax planning tool that enables property owners to reclassify assets into shorter depreciation periods. Typically, real estate is depreciated over 27.5 years for residential properties and 39 years for commercial properties. However, cost segregation allows for certain components of a property to be depreciated over shorter periods, such as 5, 7, or 15 years. By accelerating depreciation, investors can significantly reduce their taxable income and increase cash flow, providing more capital for further investments or property improvements. Given the complexity of cost segregation and the specific IRS guidelines that must be adhered to, it is crucial to engage a qualified professional with expertise in this area. A cost segregation specialist will conduct a thorough analysis of the property to identify segregable assets and ensure compliance with IRS regulations. Their expertise can maximize the benefits of cost segregation while minimizing the risk of audits or disputes with tax authorities. The cornerstone of cost segregation is the comprehensive study conducted by qualified professionals. This study involves a detailed analysis of construction documents, blueprints, and property records to identify eligible assets. Additionally, site visits may be necessary to assess the condition and functionality of various components. The results of the study provide the basis for reclassifying assets and calculating accelerated depreciation deductions. The Benefits for Real Estate Investors: Increased Cash Flow A cost segregation study allows property owners to front-load their depreciation deductions, reducing their tax burden and increasing their cash flow. Through the study, assets are reclassified into shorter depreciation periods, resulting in larger deductions in the early years of ownership. With more funds readily available, property owners have greater opportunities to invest in other projects or repay debts. Lower Tax liability Cost segregation is a powerful tax planning tool that can help property owners reduce their overall tax liability. By shortening the depreciation schedule, it is possible to reduce the tax bill significantly. Moreover, it also enables property owners to claim the retroactive depreciation on previously owned properties that qualify for a cost segregation study. This can result in substantial tax savings, freeing up funds that can be reinvested in other projects. Improved Property Valuation A cost segregation study can have a positive impact on property valuations. It can help identify assets that are significant and make important contributions to the property’s overall value. This can increase the property’s depreciation schedule, leading to more tax benefits in the future or higher resale values. Additionally, the study may help property owners negotiate better loan terms, increasing their borrowing capacity and improving cash flow possibilities. Increased NOI Cost segregation can improve the property’s Net Operating Income (NOI), which measures the cash inflow from the property after accounting for operating expenses. By identifying items that can be classified into shorter depreciation schedules, property owners can increase their deductions, lowering their tax burden, and improving their cash flow. This increased NOI can help increase property value and create more opportunities to invest in other real estate ventures. Reduced Audit Risks The IRS closely scrutinizes depreciation deductions and inconsistent practices can lead to an audit. A cost segregation study conducted through a professional service can reduce the risk of being audited, as they work with the IRS to provide accurate and complete documentation. A study also helps property owners keep up with current or changing tax regulations while reducing the likelihood of audits and compliance issues. Cost segregation is an essential process for property owners who want to maximize their investment returns. These five benefits highlight the significant advantages of cost segregation and provide property owners with the knowledge and tools they need to reduce their tax liabilities, increase cash flow, and improve property valuations. By utilizing cost segregation, property owners can make informed financial decisions, improve their portfolio’s overall value, and take their real estate investments to the next level.
