Commercial Property Management 
Commercial Property Management |
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BackgroundThe 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 ManagementThe 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 OutgoingsThis 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 ConditionThis 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. |