Why? Well the answer is a simple one. The relationship can be mutually beneficial and surely that has to be good news for the bank balance of the professional landlord? Having said that, there are still professional landlords and property landlords who do not see this and, come hell or high water, they will not use tenant management software. There may be a number of reasons for this reluctance; property managers can be protective of their property portfolios and business reluctant to hand over some control to another business and in the current economic climate all businesses want to keep functions in house where they can control and save costs. read more here
So, what are these reluctant and hesitant property managers missing out on? What can property letting agencies offer the professional landlord?
Letting agencies find suitable tenants for the professional landlord. It sounds obvious and it sounds simple but it can be a daunting, time consuming and resource hungry task. There is also a lot of regulation surrounding tenancies, contract and property law can be a minefield. Good letting agencies are experts in these areas, it’s what they do. Most professional landlords employ specialist to manage tax liabilities and carry out complex building and maintenance work why is this aspect of business any different? After all it is finding the right tenant for the right property that should secure the long term benefit of a good and regular rental income.
So, how should it work? First the commercial landlord needs to meet the letting agent in order to view the property and to discuss and determine where it fits in the rental market and what an appropriate rental income for it is. There is often no charge for this initial service and rental income assessment. Once an appropriate rental income has been agreed then the letting agent will advertise the property. You should discuss with the letting agent what the advertising options are and what is best for the property and the area. Letting agencies these days can advertise properties in their shop windows, in the press, in trade magazines and on-line.
Once the advertising has generated interest then the letting agent will show the property to the prospective tenants. Remember they are your agent and as such are acting on your behalf and under your instructions. You should be very clear about what you are prepared to negotiate in terms of rental income and lease provisions. The agent has a legal duty to act within the terms and scope of the authority that they have been given by you and if necessary they must refer any counter offers or other areas of negotiation back to you for further instruction. The law of agency affords the professional landlord some protection in this regard but you should be very clear and specific in your instructions to an agent.
Once the negotiations have been completed and agreement has been reached, the letting agent will draft and produce the paperwork, the tenancy agreement. Do make sure that you read and understand everything in it and if you have doubts, especially at the beginning of a professional relationship with an agent, then have it looked at by a lawyer specialising in commercial property. By building a professional relationship with a good letting agent you can get on with what you do best, acquiring and managing good property, confident in the knowledge that the right tenants are in them paying you a regular and good commercial rent.