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.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Breaking News

BREAKING PROPERTY NEWS – 04/07/2022

Daily bite-sized proptech and property news in partnership with Proptech-X.   PRESS RELEASE: Backing by real estate market leaders ING Ventures, JLL Spark, Blackstone and Concrete VC will help accelerate PRODA’s efforts to scale its transformative rent roll data platform PRODA, the London-based data processing and analysis platform, has announced the completion of its Series A…
Read More
does a garage add value to your property
Home and Living

Does a Garage add Value to your Property?

The most important part of this subject, well leastways for me, is if you have the space / land available so to have the choice of either a garage or not. Surely this plot of land holds the value and it is over to the home owner if they would like a garage or not?…
Read More
Letting Agent Talk

How to Be an Awesome Landlord in 2022

Some people may view being a landlord as an easy way to make money, but there’s much more to it if you want to truly excel in this role. The best landlords always go above and beyond to provide comfortable homes for their tenants and make them feel as welcomed as possible. Indeed, to be…
Read More
Property for sale
Estate Agent Talk

Selling Your House? Here’s What You Need To Do

Selling your house is a big decision. It’s not something you do every day or even every year. So, when the time comes to sell, you want to make sure you’re doing it right. That means getting the best possible price for your home and making the process as smooth and stress-free as possible. So,…
Read More
Estate Agent Talk

What Are The Factors To Appreciates The Real Estate Property Prices

Are you planning to sell your home? Are you buying a home? Whatever the scenario is, there are some things that you need to look after. In case you are selling your house, you have to set the price on the basis of those factors, or you need to ensure that all these things are…
Read More
Breaking News

WEEKLY NEWS ROUNDUP – 01/07/2022

A roundup of the week’s top property and proptech news stories in partnership with Proptech-X   Table of ContentsHide On The Market: Housing market starts to rebalance as remarkable buyer and seller confidence prevails Renting to Students: TDS Poll Confirms Common Issues and Reasons for Disputes in Student Lets LexisNexis and Coadjute partner speeding property market…
Read More