How To Make The Most Out Of Your Commercial Property

So you own a commercial property. You are a landlord or a property investor. Here are a few tips to make sure you are legally protected and at the same time improve your yield and increase your profits:

  1. Make sure you have a foolproof lease. Make sure that the tenants pay for things like property management fees, surveyors costs, legal costs, etc. Ensure that all expenses are covered by the service charge clause. Is the repairing clause is properly drafted? Also, make sure that you get the business rates concession if the property is empty.

  2. Rent Reviews. Make sure there is a rent review clause even if it is a short lease (i.e. 3 or 5 years). Make sure you instigate the rent review on time. Make sure you collect back rent once the rent review process has concluded.

  3. End of Term Make sure you exclude the Landlord & Tenant Act effectively to avoid your tenant attaining right of tenure. Negotiate to renew the lease at least one year before the lease ends.

  4. Consider “change of use”. Changing a “newsagent” to a “café/restaurant” could generate a higher rent and increase the value of the property.

  5. To park or not to park. Do not give away any parking space for free. Your tenant may not even need it. Consider letting out your parking space separately to other tenants.

  6. Think Expansion! Consider buying neighbouring property/land to give you better options for expansion. What about building above your building to create space (or converting the loft space)? If you have high ceilings , consider building a mezzanine floor (more floor space you can rent out and charge rent for).

  7. Think Extra Rent! Are there other spaces in your building you can rent out? For example, an external wall can hold an advertising hoarding or an empty roof can hold solar panels and mobile phone masts.

If you want to implement the poinst above, why not contact one of our lawyers today to get a plan in place. We can take care of all the legalities and recommend other professionals for anything else.