Top Tips for Finding the Best Tenants for Your Commercial Property

Building a successful commercial property portfolio is only partly about identifying the right investment opportunities. Maximising yields and minimising risks also relies on finding the right tenants.

In the age of the internet it’s tempting to think that matching prospective tenants and properties is a simple brokerage process that can be done online with minimal effort. But it’s worth remembering that landlord-tenant relationships can span many years. Powerful legal rights and obligations are vested in your tenants through multiple pieces of legislation and the lease agreement.

You rely on your tenants to pay their rent promptly and maintain your investment in good order for the duration of the lease, so it’s clearly worth taking some trouble to make sure you’re attracting the best possible tenants who have a good strength of covenant and can be relied on to understand and respect their lease obligations.

Effective Marketing

The story you tell and the images you use when listing your property online will help to generate better quality The wording and images you use when listing your property online will help to generate better quality enquiries. And to draft the right content you have to understand the local property market and know your target audience. Choosing the right platform can also affect the quality and quantity of enquiries.

Managing Enquiries

Receiving enquiries, checking their viability, and arranging viewings can be time-consuming. But this process needs to be done methodically and efficiently to avoid wasting time later on and perhaps missing out on good potential tenants.

Due Diligence

Hicks Baker are well experienced in carrying out the due diligence required to inform your review of a prospective tenant’s financial covenant strength, which in turn helps to ensure they are a ‘good fit’ for your property asset. We also thoroughly explore the prospective tenant’s intended use, and any property alterations this may prompt, as this can have a knock-on effect for lease terms, reinstatement obligations, and your ongoing property management.

Lease Negotiations

Careful due diligence reduces the chances of wasting significant time on lease negotiations that don’t reach a successful conclusion. A good commercial property agent will negotiate on your behalf to structure a lease that is viable for your tenant but also best protects your interests.

Advice

We can also help you anticipate and interpret trends in the local commercial property market and the latest occupier expectations, which may lead to considering alterations and improvements to make your property more attractive and commercially viable.

Tenant search and selection has implications that extend well into the future, so it makes sense to use professional expertise to help limit your risks and maximise opportunities.

Contact us on?0118 959 6144?or email?[email protected].