When it comes to owning commercial property that you do not occupy yourself, you will likely have a tenant in the property or tenants if there are several elements. At this point, commercial property management, even if you look after the property yourself, is what needs to be carried out.
What therefore would you need to do, I hear you ask, the commercial tenant on a Full Repairing and Insuring Lease is responsible for the property, surely there isn’t anything I need to worry about? However, this is not necessarily all that is needed to ensure a smooth business relationship and thriving asset.
A landlord of a commercial property will need to ensure rent payments are made on time, and a tenant may require invoices to be sent to them for their accounts. If the property forms part of an estate or a multi-let property, then a service charge may be payable and collection of this is required to either pass on the estate management company or go towards a service charge fund. This service charge fund will then be needed to cover communal costs such as landscaping, security, lighting etc.
Properties, whether residential or commercial, usually requires building insurance cover and landlord may require rental insurance too. Insurance is renewed annually, and a tenant is usually required to reimburse the landlord for this cost, and an invoice may need to be sent to the tenant to request this payment. We are not FCA authorised to initiate the cover from your insurance broker, but if you require a broker, we have connections that we can put you in touch with, we are happy to assist.
If the property is a mixed use property, with residential elements, such as a flat above or two flats, the residential elements may require separate and additional management needs, such as interim inspections, contractor liaison for repairs, an annual gas certification etc. A landlord of a residential element is responsible for repairs and maintenance. This is what sets commercial property management apart. On a Full Repairing and Insuring Lease (FRI), a tenant has full responsibility for repairs and maintenance, an effective FRI with a service charge puts the organisation of repairs to the landlord but the cost to the tenant. An Internal Repairing and Insuring Lease (IRI) puts the exterior repairs on the landlord and the interior to the tenant (though the lease will clearly stipulate what elements the parties are responsible for in more detail).
Whether you are a landlord to one property or several properties, unless this is your full time job, you may not wish to be burdened with these tasks and would rather reap the income and outsource the management. This is where we can assist and our commercial property management service can give you peace of mind that your assets are being looked after and the time you save from this, you can put to better use doing what you love instead, whether that is rounds of golf, spa treats or long breaks away.
Hassle-free property management is what we offer, and we have efficient methods to ensure that key events are not missed; whether that is also the life of the lease with lease events such as rent reviews and lease renewals, or ensuring service charge payments are received and the funds properly used and recorded.
Sau-Wan has experiencing in managing multi-let offices and small industrial estates, overseeing the service charge budget for estates and providing income and expenditure documents, liaising with accountants on accounts as well as providing information for VAT returns.
Rebecca has experiencing in managing mixed-use properties or business premises, building strong relationships with landlord and tenants, and providing friendly professional service.
Commercial property management involves not only rent collection and service charge management, but also the building of good business relationships between landlords and tenants, as well as offering a clear transparent communication channel. Effective management means being able to guide, signpost and give advice about the asset management as well.