Here at Boxpod, we match commercial property landlords with businesses looking for their new, next, or first commercial home. For any landlord, it is essential that their properties are kept in the best condition property – to keep their value, enable landlords to command the highest rent, make the property as attractive as possible, and reduce the cost of maintenance during or between tenancies.
As a commercial property landlord, you cannot be there all day, every day to ensure that your property is being well looked after. Of course, there will always be normal wear and tear when any property is leased, but it should be in generally good condition at the end of the lease. Some tenants can be more responsible than others when it comes to the upkeep of a property.
Regardless of the tenants that you have, there are some things that you can do to try to ensure that your property is kept in good condition.
Carry out Repairs During and Between Tenancies
One of the best ways that you can help to protect your commercial property is to ensure that it is in excellent working order when your tenants take over. By making sure that all of the repairs are carried out and appliances serviced, you can reduce the chance of them breaking or being damaged during the lease – something which should also save you money as emergency repairers/engineers can be expensive!
Whether it is getting the boiler serviced, gutters cleaned, or fixing a dodgy lock, sorting out the small things earlier on is better than waiting for them to break.
Likewise, if your tenant contacts you with a problem, it is important to try to sort it out as soon as you can to keep it as least expensive for you as well as keep things as easy as possible for your tenant.
Ensure That it is in Good Condition When it is Handed Over
It is human nature that people respect things more when they are already in good condition – or, alternatively, if something is in bad condition, they are less likely to look after it. Ensuring that everything is in good condition, as well as giving the property a lick of paint and perhaps a new carpet, can go a long way in ensuring that tenants look after a property.
Carry out Regular Inspections
As a landlord, you have the right to carry out inspections now and again. This shouldn’t be about looking to see how tidy your tenants are keeping the property, but more looking for problems or potential problems such as leaks or safety hazards, then getting the fixed or changes as quickly as possible. These could also include looking for pest infestations as these can be very damaging to properties.
You should write the inspections into your contract so that you are clear with your tenants from the beginning and for them to be aware of your expectations. This is especially important if you have a longer-term contract with your commercial tenants.
Use a Full Repairing and Insuring (FRI) Lease
A very useful way to ensure that your commercial property is kept in good condition is to use a Full Repairing and Insuring (FRI) lease if your lease is for over 6 months. This means that the tenant will be responsible for paying for any repairs throughout the lease. If you have a building that is shared between different businesses, the upkeep of the common areas would be the landlord’s responsibility (usually covered in a service charge).
A Schedule of Condition should be included at the beginning of the lease. An inspection should be carried out by an independent person (preferably a chartered surveyor or such like) noting the property’s condition. This is then agreed upon by you and the tenant before the lease starts, and the property must be returned to you in a similar state.
Multi-Tenanted Properties
If you have a commercial property with multiple tenants, it can get a little more complicated. This is because instead of just having one person to deal with, you will need to coordinate maintenance, repairs, and inspections with all of the tenants that you have.
Some of the maintenance and repairs that you will need to consider – especially when you have a multi-tenanted commercial property include:
• Electrical system checks
• Gas checks
• Servicing
• Painting on a regular basis
• Fire alarm and fire equipment checks
• Air-conditioning checks and maintenance of ducts, vents, etc.
Don’t Forget the Outside of the Building
It is also important to look after the outside of your commercial property – it is just as important for health and safety as well as the visuals of the property. Ensure that the outside areas are well and safely maintained to ensure that repair and maintenance costs are kept down.
Keep a Schedule of Checks and Maintenance
Trying to do everything all at once can be difficult to organise and a lot to deal with for both you and your tenant(s). There will also be different time frames within which inspections or maintenance need to be carried out. It is, therefore, essential that you are organised and have a schedule so that you and your tenants are both aware of what needs to be done and when.
Final Thoughts
There are many reasons why it is important to keep your commercial property in good condition, but the main ones are the financial cost, and your ability to re-rent it (quickly) at the end of the commercial lease. Whether your commercial property is a warehouse, retail unit, office space, or workshop, you will have different repairs and maintenance responsibilities and considerations, and you should carefully think about this before you rent it out to your first tenants.
Ensuring that the property is in good condition at the beginning of the lease is also essential.
Here at Boxpod, we want to help you to find your ideal commercial property tenants, and by listing yours with us, we can help to make the magic happen.