Finding and renting commercial property seems like an easy enough task which you would expect to require less hassle than renting out residential property. It is common though for people renting commercial property to run into difficulties, especially if this is a new area of business for them, or they are renting out multiple properties at once.
Not surprisingly, there are ways to look after commercial properties, whether you’re planning on renting out a retail space, café, or restaurant, etc. and want to make sure everything is above board. It would involve finding a local commercial property management company to help you. Their services come in handy when looking after the day to day operations a landlord needs to fulfil, as well as those areas that someone not adept at managing a commercial property would easily understand.
Based on advice from Ross & Liddell, which provides commercial property management in Glasgow, let’s have a look at the key factors someone considering buying and renting out a commercial property should be aware of.
The relationship you want to have
Everyone has had a landlord they didn’t get along with for whatever reason. When you’re on the other side of the relationship and become a landlord, you ideally want to avoid becoming a source of annoyance and frustration; not just for your potential tenant but for yourself.
If the world of property management is new for you, and you feel you may not have the people skills, then a commercial managing agent is a good idea. They can ensure a professional relationship and act as a middleman between you and your tenants. This prevents a sour relationship, especially when looking at the likes of rent (which we’ll get to later).
Where compliance lies
Do you know what kind of commercial properties need fire safety measures, what kind of commercial properties need certain water services in place, and who is at fault when fixtures and fittings break or get damaged?
Compliancy is a particularly important part of commercial property management which often gets brushed under the carpet until problems arise. If responsibilities and compliancy are not clearly laid out in paper, you could end up getting into arguments with commercial tenants. Even if it is something as simple as you did not realise you had to take responsibility for a broken window, you don’t want to end up in a drawn-out argument with a tenant he may even refuse to start paying rent or say they want to go to court.
With commercial property management, you have a company who knows precisely where compliance lies, and who is responsible for what.
Using contracted services
If the power went out, if there was a leak, or if the property was damaged, would you know who to contact to get things fixed? If your commercial property is in a shared building or somewhere with an elevator, would you know who’s responsible when things break down?
Using contractor services can be tedious if you have to spend a lot of time talking to other property owners, figuring out who they get in touch with, what they (and you) have to pay and who does what in a shared area?
Leave all that up to your commercial agent and give yourself more time to do things you need to do.
The need for inspections
Commercial properties, especially those that are customer-facing, need to have inspections carried out regularly. A typical example of this would be needing to get fire alarms checked annually or ensuring health and safety measures are being met. Weigh up the options of doing all this by yourself, or having commercial property managers (who do this all the time) look after inspections for you. They would usually keep records as well, which helps with insurance over the years.
Who will be looking after rent
This last piece of advice, in my opinion, is the best reason to handover proper responsibilities to a company rather than look after yourself. Being the landlord who is always asking for rent is only going to make your relationship with tenants turn sour. Instead of chasing after rent, have an agent look after it instead.
They don’t get paid by you until they get rent on your behalf, which puts the onus on them to ensure tenants pay on time and don’t fall behind. It also means you never have to deal with tenants asking for leeway or getting into petty arguments.
Sound like too much to handle?
If this all sounds like too much work, you might want to consider getting a commercial managing agent. They would take care of all the points addressed in this article, as well as other responsibilities which help take the pressure of managing a property. I would stress that it is best to find a local agent, as they would have a better knowledge of things like council requirements and regulations pertaining to a specific business type.
