The Client
Our client is one of the UK’s major pension funds, with a dedicated asset management entity overseeing a national portfolio of leasehold residential properties. The portfolio includes around 42,000 units across England and Wales, generating income through ground rents. This income stream supports pension payments and is essential to the fund’s long-term commitments.
The Challenge
Before Innovus took on the portfolio, the client was facing several issues. Ground rent arrears had risen above 10 percent of the total rent roll, which was affecting cash flow and raising concerns among investors. Service levels were inconsistent, and processes around lease events (such as resales and alterations) had fallen behind.
The handover process revealed further problems. Key documents were scattered across paper files, which were often misfiled or missing. It wasn’t clear what had been actioned and what hadn’t. This created delays, uncertainty for leaseholders, and made it difficult for the client to demonstrate clear operational oversight.
Multiple consultants were involved across the portfolio, leading to duplication and confusion. At the same time, political and legislative uncertainty around the future of ground rents was adding to leaseholder reluctance and contributing to a rise in complaints. As a publicly traded company, the client also had to meet compliance requirements and show best value across all supplier relationships.
The Solution
The Innovus team provided a fully integrated asset management service covering ground rent collection, rent reviews, leasehold transactions, debt recovery and surveying. Consolidating these services under one provider gave the client greater visibility and control and removed the need for separate consultants.
Our first priority was onboarding. While some digital systems were in place, much of the data was incomplete or unverified. Our team worked directly from the client’s former offices to sort, scan and validate thousands of physical files. We cleansed and rebuilt the portfolio data to ensure accurate ownership records, contact details and lease terms. Particular focus was given to capturing leaseholder emails and phone numbers to improve communication and reduce reliance on post.
We then introduced a clear arrears process, supported by dedicated credit control. While enforcement routes were available, our approach prioritised engagement. We actively worked with leaseholders to understand individual situations, offer payment plans where needed, and resolve debt without triggering unnecessary legal action.
The transition was supported by experienced staff and internal functions including IT and compliance. This gave us the ability to manage the handover efficiently, address legacy issues, and deliver a consistently high service.
The Result
Arrears dropped from over 10 percent to under 2 percent, well beyond the client’s initial target of 5 percent. This improvement had a meaningful financial impact, ensuring a steadier income stream during a period of rising landlord costs and regulatory pressure.
Leaseholders experienced faster responses, clearer communication, and a more coordinated service. Issues with resales, alterations, and leasehold transactions that previously caused delays were brought under control, reducing complaints and outstanding work.
Better data quality supported reliable rent demands and direct contact with leaseholders, which improved arrears recovery and built stronger engagement. This helped clarify confusing messages around ground rent and boosted leaseholder confidence.
Overall, the client achieved a more resilient, transparent, and efficient operation that continues to perform strongly despite ongoing regulatory and political changes.
