7 Features That Aspiring Commercial Tenants Love
As an estate agent, your job is to do more than simply connect buyers with sellers. You also have a role in figuring out what tenants actually want so that you can assist landlords. If you can provide them with direction, they will make more money, and they will continue coming to you to market their properties.
But how, exactly, should you be advising commercial landlords? That’s the big question.
Fortunately, in this post, we have answers. Here are the features that attract tenants to rental properties.
Safe Surroundings
If a landlord comes to you looking for a rental property, always inform them about the safety of the property. Ideally, you want to promote units in well-to-do areas that will attract the type of people likely to pay the rent consistently on time.
Of course, if the property is in a dangerous area, the price should reflect that. Returns are likely to be significantly lower over the long term.
Move-In Ready Condition
Renters also want to move into properties that fulfill all their needs from the get-go. They don’t want to spend weeks refitting or sorting out a broken-down boiler.
If the landlord isn’t sure whether the property is ready to live in right away, then advise them to spend a couple of weeks there to see whether everything works as it should. Often, it’s hard to identify problems from a quick survey. You actually have to be there full-time to get a sense of what it is like.
Upgrades
Estate agents should also inform landlords that tenants love unexpected upgrades. When they feel like they are getting something for nothing, it encourages them to stay at the property long-term.
How you upgrade the property depends on the type of tenants you are hoping to attract. Quality finishes, for instance, appeal to companies with high incomes. Installing certain items, such as an apothecary cabinet, can appeal to tenants from particular sectors, such as the medical or pharmaceutical industries.
Think carefully about the types of businesses landlords want to attract and then make upgrade recommendations based on that. You could even ask them directly to learn more about what they expect.
Appliances Pre-Installed
Pre-installing appliances is another way for landlords to attract long-term commercial tenants to their properties. Businesses want to start operations as soon as possible, not spend weeks refurbishing and installing sinks, air conditioning units, and sprinklers.
Tell landlords not to worry about the costs. They will make them all back at higher rental prices and attract tenants who stay long-term.
Access To Public Transport
Commercial tenants need premises with good access to transport. Workers should be able to access buildings easily.
However, not all commercial landlords understand this. Therefore, as a responsible estate agent, it’s your job to get them to consider this. They may have found the perfect office unit, but if it is a long way from transport hubs, it will struggle to perform.
Age Matters
In the residential property market, age can actually be a good thing. Buyers want homes with character and charm.
However, in the commercial sector, it’s a different story. Older buildings typically come with higher maintenance costs, and most companies don’t want to foot the bill.
Again, not all landlords are aware of this. They don’t understand that older premises are more likely to experience plumbing, roofing, electrical and HVAC issues.
Therefore, advise landlords to purchase properties that don’t require any substantial changes, upgrades or maintenance for at least the next fifteen years.
Rental Price Is Important
Landlords sometimes believe that the absolute value of the rental price they charge is what matters, but that’s not true. What really counts is the yield: the percentage return they’re getting on their original investment.
For instance, suppose a landlord purchases a property for £1 million and charges £10,000 a month in rent.
The yield on the property is 12 percent.
Now consider a landlord who buys four £250,000 properties, each generating £4,000 a month in rent. In the latter situation, the yield is higher at 16 percent, even though the individual rent amounts are much lower.
Inform landlords that companies are sensitive to the rental price. In many markets, charging as little as possible is the optimal strategy because capital costs are so low.
Conclusion
In summary, estate agents need to be careful when advising commercial landlords. Requirements are vastly different from the residential sector. However, if you get it right and enable landlords to provide tenants with properties they want, you can dramatically boost your business.
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