Mistakes to Avoid When Leasing Commercial Property

As a real estate agent, leasing commercial and retail property can be a sizeable part of your commission. For that reason leasing should be a highly professional service that is offered to the landlords and tenants in your area.

Some common mistakes can occur in the leasing process and they should be avoided wherever possible. Here are some ideas:

1. Always qualify the tenants before you release property detail to them. More often than not, the enquiry may not be genuine and may be another real estate agent in the local area.
2. Take the tenants through the property yourself so you can identify any needs and issues that can affect their decision.
3. Always follow up the prospective tenant after the inspection process so that further information can be provided on any issues that have arisen.
4. Ask the tenants if they have inspected other local property with other agents recently. It is likely that their relationship with other agents can undermine your inspection and negotiation process.
5. Always understand where the tenant is coming from and going to. There is likely to be another property that they lease or own and will require assistance moving away from.
6. Never give the property keys to a tenant and allow them to inspect the property without you. Uncontrolled keys are a recipe for a leasing disaster.
7. Understand where the tenant is currently operating the business and how successful it has been over recent time. Failure to do so may see you spend time on a lease deal that is not achievable.
8. Always get the lease documentation signed, guarantees in, and rental paid before any occupancy is provided for the tenancy.
9. Always get the lease documentation signed, guarantees in, and rental paid before the premises is provided for fitout modification.
10. Get a sizeable bank guarantee or bond to protect the landlord in the leasing process.
11. It is preferable for a solicitor on behalf of the client to prepare the lease document. The lease document should be designed for the needs of the building and of the future occupancy. Generic lease documentation may be cheap and easy, but rarely does it completely cover the unusual issues and events from the property.
12. Keep the tenants under control in the inspection process and most particularly keep them with you. Many tenants have created damage or been injured in an uncontrolled inspection process. Personal injury and damage claims result.
13. Make sure the landlords insurance covers your property inspection process as a real estate agent from the aspect of public liability. When injuries occur on a property during an inspection, it is both the property owner and the real estate agent that will be pursued for damages.
14. When inspecting property for lease, make significant notes regards conversations and representations. Keep those notes for future evidence against any misunderstandings or claims.
15. Ask about any notices, orders, or restrictions that may have been applied to the property by the local council or building authority. They can impact the permitted use of the premises.

When leasing commercial property, it is your preparation and diligence to the task that will keep you out of trouble. Understand the property in every respect before any tenants are taken to the property.