In recent years the property industry has been bombarded with computer systems designed to undertake property management and residential agency. In comparison, however, there are very few systems available providing comprehensive property valuation and analysis functions. The reason for this is clear: property management and agency are reasonably comprehensible activities for software houses to understand — property valuation and portfolio analysis are not! Hence, the few systems that have been developed have been designed by people with an intimate knowledge of valuation methods and the property market.
One such is the “Property Valuation and Portfolio Analysis System” recently supplied to the Crown Estate Commissioners by Stephen Sykes Associates. This system offers a comprehensive array of facilities for undertaking investment valuations and detailed analysis of the structure and performance of a portfolio. Although designed primarily to run on the IBM XT and AT computers, the software may be adapted for a wide range of both single- and multi-user configurations. For example, a version of the system is presently installed on Healey & Baker’s Data General minicomputer.
Using the software it is possible to value a single property, a single tenancy, a group of properties or a whole portfolio. Two valuation models are available: a dual rate “hardcore” model and a single-rate “equivalent yield” model. Thus the system employs a combination of traditional and more sophisticated valuation methodologies. The execution of a valuation is entirely automatic and is terminated only if a date conflict is detected (eg a tenant review date exceeds a ground lease expiry). An interesting feature of the system is that coefficients are computed which define how sensitive capital value is to changes in the estimated rental value and the capitalisation rate. Thus, a valuation may be reworked away from the computer with different values of the yield and ERV using simple one-line calculations.
One of the features that attracted Crown Estates is the robust nature of the software. That is, it is impossible for a user to become lost in the system and numerous data-input-checking routines prevent the programs from “crashing”. There are many in-built safeguards to protect the database and ensure that data are not inadvertently erased or overwritten. And further protection is provided by a password system.
Stephen Sykes Associates also supply commercial agency and development appraisal software. Further details from Stephen Sykes, Tanglewood, Vauxhall Lane, Southborough, Tunbridge Wells, Kent TN4 0XD (0892 34859).
