At its today's session, the Prague City Council has taken note of an analysis of municipal property management provided by third parties. All property management contracts are to be reviewed soon based on the results and recommendations of the analysis. The first round of the review is expected to be completed by the end of the year.

At their extraordinary session, Prague city councilors took note of results and recommendations of the Analysis of Prague Municipal Property Management Provided by Third Parties.

“The analysis has helped us understand how contracts with third-party managers work and where there is room for improvement. For now, we know that the contracts will need to be reviewed by the end of the year to make them much more effective for the city. At the same time, we will prepare a tender for new property managers to be chosen by the end of 2021. This will help improve municipal property management, which is my priority,”says Jan Chabr, Prague city councilor responsible for the municipal assets agenda.

The aim of the analysis was to create an overview of municipal assets managed by third parties and to gain insight into the property management processes and the existing contracts. The analysis also focused on asset management activities in 2017 and 2018 including the costs, the causes of negative financial performance, and the economic potential of each asset. The document provides recommendations for optimizing the asset portfolio management and defining the fundamental principles and parameters of any new contracts.

The city administration is going to invite the respective property managers to jointly review their contracts so that relevant amendments can be adopted by the end of the year.

The city will also start preparing changes to the property management system so that new municipal property managers can be selected in transparent tenders by 31 December 2021. At the same time, all new contracts for property management will be subject to a further analysis.