Background
The early years of the 21st Century brought about an unparalleled increase of investment in commercial property by ‘first timers’ largely as a result of the downturn in equities markets - which reflected in extremely poor performances of pension funds, low costs of borrowing compared to leasing and the opportunity to invest through tax efficient Pension Plans.Indeed, it could be said that rather than a nation of shopkeepers Britain had become a nation of property investors.
Self Management
The management of commercial property can, prima facie, be straightforward, and indeed when things go right it is.The tenant moves into a pristine building, maintains it impeccably, never stores goods outside which could be a fire hazard, pays his rent, service charge and insurance premium on time and never shares occupation or moves away without notification.
Of course reality is not so straightforward and unless the appropriate action is taken at the right time the landlord’s position can be prejudiced and his asset devalued.
Payment of Outgoings
This is probably the most important facet of property owning to a private investor to whom cash flow is of the utmost importance. This is particularly true of insurance premiums where quite often the sum will have been paid to the insurance company and needs to be recovered from the tenant without delay.Care and Condition
This is easily overlooked by a busy or retired private property owner but regular inspections need to be carried out to ensure that the terms of the lease are being adhered to particularly in connection with occupation and repair and maintenance of the building. Assignment and Sub-lettings During the currency of the lease it is quite probable that the tenant will wish to move on to either bigger premises, to another area or simply cease business. At this stage he will require consent either to assign his lease or sub-let the premises. A landlord needs to ensure that the incoming assignee or sub-tenant is at least of equal status to the original tenant and is made aware of his obligations under the terms of the lease, perhaps secured by a guarantee from the outgoing tenants.Why a Professional Property Manager?
The law governing the occupation of property is constantly changing and it is vital that such change is embraced and implemented appropriately. Also an efficient property manager will ensure that regular inspections are carried out both internally and externally; that, as far as possible, rent, service charge and insurances are paid on the due date and where necessary arrange collection by a third party; deal with applications for assignment or sub-letting and in these ways ensure that the value of the asset is maintained at the highest possible level. In addition he can advise on peripheral matters, for example, insurance reinstatement value. At Michael Parkes Surveyors we employ the latest in software systems to ensure that rents and other outgoings are demanded well in advance of the due date ensuring prompt payment, more often than not by standing order. Our data system provides ample notice of diary events - rent reviews and lease renewals for example – permitting the appropriate action to be taken at the appropriate time.
We specialise in the management of single units, whole estates, office blocks, shopping centres and in particular proactive management where lease restructuring and tenant relocation bring about significant increases in value.
Our fees are always competitive although naturally the larger the property the lower the percentage charged. Part, or all of the fee may be recoverable from the tenant, dependent upon the terms of the lease.
Contact Denise Ford at our Head Office
Michael Parkes Surveyors Limited
Reading House
Waterside Court
Neptune Close
Rochester
Kent ME2 4NZ
Telephone: 01634 294994
Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it