As commercial leasing becomes more complex, it becomes ever more difficult to navigate your way to achieve successful and compliant tenancies. To be effective, you need expert help from people who have the relevant industry qualifications. In addition, understanding what tenants want is key to achieving a premium rent for your commercial property.
How to achieve the ultimate goal for commercial real estate
As an owner of commercial property, your primary goal is to realise a steady income. However, there is more to maximising revenue from your property than acquiring a tenant and signing a lease.
- Managing tenants
Before you enter into an agreement with a potential tenant, you need to vet them carefully. This includes proven business history or income statements and trade references. If you’re dealing with an organisation, you need to be certain that they are a legitimate, reputable and responsible organisation that may be Incorporated, Not-For-Profit, Non-Governmental Organisation, Partnership or Proprietary Limited entities. The type of entity will determine which financial instrument of security should be applied.
- Rent levels
Unless you’re fully aware of the market for your type of commercial property, you won’t know with any certainty what rent you need to charge so that it’s attractive to tenants and profitable for you. Pitch it too high and you’re missing out on great tenants. Pitch it too low and you’ll miss out on the revenue you deserve.
Commercial leases are becoming much more complex with increased compliance by governments placing more pressure on property owners. If you fail to structure a commercial lease correctly, you could be at risk of causing a breach in the lease. Commercial leases are notoriously difficult to break for either party; however, a skilled commercial specialist will have techniques that can achieve an outcome with win/win results.
- Maintenance and compliance
Owning a property isn’t like owning shares where you can set and forget. As an owner of a commercial building, you have enormous responsibilities that include some or all of the following:
- Structural repairs and maintenance
- Scheduled cleaning services
- Fire compliance obligations
- Car park and common amenity management
- Traffic management
- Water supply and heating
- Air conditioning and environmental
It is important to screen tenant maintenance requests for determination of responsibility for the cost to the property owner or referral back to the tenant to accept costs within their lease obligations.
Why engage a commercial property manager?
A commercial property manager like Herbert Commercial specialises in services for commercial properties. Everyday responsibilities include (but are not limited to):
1. Building maintenance
As a property owner, you are obliged to ensure the premises are safe for tenants, third-party workers and the general public. Your property manager will have a schedule for inspections, preventative maintenance, repairs or cleaning. In addition, a property manager will attend promptly to any emergencies like major leaks or roof damage due to storms.
At Herbert Commercial, we have a trusted selection of tradespeople to call on for both routine repairs and emergency repairs. We are able to provide property owners and tenants access to pre-assessed trades that have regular work orders and are proven to be cost-effective and high-quality.
2. Service contracts
We routinely check all service contracts to ensure our owners are receiving value for money. When we need to engage a new contractor, we get quotes needed for complex, out-of-the-norm works, and pre-assess the contractor.
3. Rent setting
As experienced commercial property managers, we understand what to charge based on the location of your property, and the potential tenants. As well, we structure your lease to include regular rent increases so your building remains profitable.
4. Rent collection
We help you with cash flow by keeping tenants’ rent and outgoing invoices paid on time. Consistent monitoring of arrears will identify if a tenant defaults. Experience has taught us that working with a tenant, and demonstrating support is available, is effective in arrears management. This usually involves implementing a payment plan strategy and not allowing an agreed payment date to pass without re-engaging the tenant for a renewed commitment.
5. Marketing to attract tenants
At Herbert Commercial, we understand what different types of property attributes will attract the broadest range of tenants. The marketing we implement reflects our knowledge of the Mount Gambier market and achieves the maximum potential lease income for the type of property.
6. Qualifying tenants
We have at our disposal a broad range of tools and techniques to obtain tenants’ financial details and references. This allows us to build a clear picture of each tenant applicant profile before presenting the best candidates to the owner/s with our full assessment of soundness and viability.
7. Lease preparation and review
We prepare the lease so it’s in a form ready for your solicitor to execute. We review your lease periodically to make sure you are compliant with all regulations and current legislation.
8. Periodic reporting and planning
We apply automated systems that identify important time frames throughout the life of the lease, pre-empting action to be ahead of negotiations. We prepare monthly, annual and on-request reports showing rent, outgoings and invoices for maintenance works. We also help with environmental plans and sustainability, as well as maintenance schedules and insurance compliance. This can include annual thermo-graphic surveys, electrical safety checks, fire checks and air-conditioner servicing.
Want to achieve more from Mount Gambier commercial property?
At Herbert Commercial, we offer a full range of commercial services to maximise your revenue, ensure you remain compliant and retain long-term, reliable tenants. For advice and guidance from an expert team, call 08 87 250 500. We’re here to help.