EIGHT ESSENTIAL TIPS FOR OCCUPIERS
The current state of the economy has led to a change in the commercial property market.
And with change, comes opportunity.
Many businesses are now taking advantage of this market – reviewing their property needs, looking at ways of reducing overheads and putting themselves into a stronger position for the future.
1. Use your existing lease as a negotiating tool
The balance of power shifted sometime ago, and now rests firmly with tenants. Landlords don’t want to lose existing occupiers. A break clause or the end of your lease will provide a great opportunity to secure more flexible and favourable terms.
2. Negotiate Early
Why wait until the end of your lease? Most landlords will be happy to talk to you sooner. Remember, generally landlords prefer longer term security of income, and will often be prepared to lower the rent in return for a longer commitment from a tenant.
3. Take a close look at your other occupational costs
You may be paying a service charge which is effectively controlled by your landlord. Have you ever questioned the amount or a specific item? Does the landlord really need to be employing a contractor to clean the common areas in your building five times a week? Think of the financial saving if this was reduced to three times a week!
4. Review your Business Rates
Business rates are often simply “accepted” by tenants. Your rating assessment could be incorrect. Has the rating authority measured your building correctly and have allowances been made for aspects which could affect the value of your premises? A valid appeal could reduce your rates bill until 2015.
5. Review Your Space Requirements
Are you “rattling around” your building? Now is a great time to asses whether you are using your space effectively. A consolidation could result in a restructuring of your lease for less space and reduced overheads.
6. Don’t let Dilapidations take you by Surprise!
If you don’t keep up to date with your repairing obligations contained within your lease, your landlord could present you with a substantial bill at the end of your lease! There’s never a bad time to take a look at your lease documentation and remind yourself as to your ongoing responsibilities which will help you plan ahead and assist in budgeting.
7. Keep on top of Maintenance
A broken gutter left to leak for over a year could lead to all kinds of other maintenance issues. £100 spend now will avoid a £1,000 bill next year. Ongoing and planned maintenance makes good business sense.
8. Take Advantage of Attractive Leasing Deals
There has probably never been a better time to consider relocating. Often the costs of moving are far outweighed by the incentives and inducements offered by landlords. Reduced rents – rent free periods – capital contributions – fit outs – AND flexible leases to suit your business.
These are just some of the ways in which tenants can take advantage of the current market conditions.
We continue to work with occupiers and businesses of all types and sizes, to ensure they are getting the very best out of their property. To find out how we can work for your business, please feel free to contact David Robinson for a confidential discussion without any obligation or cost to you.
David Robinson BSc MRICS
Tel: 01959 563800
