Award Winning
commercial property solutions
The property from which a business operates is usually its biggest cost after its wages bill and the New Year is a good time to make sure that is not affecting your bottom line says commercial property agent Prop-Search.
All businesses need premises that work for them, not against them. With property costs typically second only to wages in the league table of outgoings, it is essential that businesses focus on the issues and make informed decisions.
Simon Toseland, a Director at Prop-Search, says: “There are 10 common property pitfalls that businesses often fall foul of and these should be considered to ensure that they are not affecting a business's profitability.”
1.Plan for the future. Pitfalls, such as missing a break clause in a lease or breach of a tenant's covenant, costing thousands can be minimised through expert planning. When renting premises your surveyor will ensure that, whatever transpires in the future, you are in the strongest position possible.
2.Don't pay for previous tenant's wear and tear. A survey or ‘Schedule of Condition' is likely to be the only official record of the state of the building at the start of the lease. Without it the landlord may expect you to repair defects that existed prior to your lease.
3.Remember your day job! Finding or renovating business premises is time consuming and even minor alterations can be under estimated. Your surveyor can find you premises, manage your fit out/alterations from full costing and planning, to appointing and managing contractors - saving you time and money through their expertise.
4.Don't pay more rent than you need to. Your property advisor can handle your rent review and assess whether any increase is fair, then negotiate effectively on your behalf. When it comes to a dispute your surveyor can represent you, agreeing a negotiated settlement or through arbitration if necessary.
5.Get what you pay for with service charges. Your surveyor can determine the fairness of your estimated annual charge and ensure you get any rebate due. They can make sure you receive what you are paying for, including the quality of the service provision. However, disputes are best avoided by ensuring that the lease terms are fair and reasonable when first negotiating your lease.
6.Know your rights. Some of the written terms of your lease may not be legally enforceable and you may have rights that you did not know you had. Your property advisor will be able to give you practical advice on what you can and can't do; having regard to your objectives.
7.Don't contribute to the c£300 million in over charged rates. Your surveyor understands the business rating system and is the expert in assessing whether you have a case for appeal. They can advise if you qualify for exemptions, transitional relief or reductions. They can handle the sometimes lengthy appeals process and even organise settlement by agreement.
8.Think strategically. Your surveyor will help you manage your accommodation needs and find you the most cost effective solutions. They will know how, if possible, to extricate you from onerous or long term lease commitments and will help you plan for the reorganisation of your business if its accommodation needs suddenly change.
9.Let your surveyor take the heat. Many good landlord/tenant relationships are soured unnecessarily over disputes and rent review negotiations. Your property advisor surveyor can protect you from this and create some ‘distance' between the parties whilst using his/her expertise to ensure you do not end up paying too much.
10.Use your 3rd professional. Your relationship with your surveyor should be ongoing, as with your solicitor and accountant. Through this partnership they will work to achieve your immediate and long term goals.
Prop-Search is ideally placed to advise on all these property issues. Further information or advice can be obtained from its Northamptonshire office - Tel: 01933 223300 or visiting its website: www.prop-search.com