It’s a strange time right now for anyone running or owning any commercial property. As was reported only as far back as August 2020, sales of commercial property are down. It is expected that commercial property in the likes of Glasgow, Edinburgh, Aberdeen & Dundee is going to become cheaper and more readily available in 2021, possibly sparking renewed interest amongst those looking to invest and rent out property themselves.
That, combined with the possibility of businesses rethinking how they’ll want to use office and retail space going forward, will lead to a scenario where many owners will need help looking after everything from services to bills to client demands. If this is something you think will affect you, here are some of the steps you can take depending on where you might potentially run into trouble.
Trouble with your property
If you think a vacant property is bad, then you’re not going to like a vacant property which surprises you with problems. From something as small as wear and tear to a burst pipe unnoticed for weeks, you never want to find yourself in a position where your investment, to borrow a phrase, comes back to bite you with hidden problems.
Get yourself a property manager who has experience looking after things when you can’t. They can help keep tabs of different properties, fill you in on what needs fixed, and work on your behalf, so there are no headaches with tenant requests or vacant properties causing issues.
Trouble with co-proprietors
This will be a big issue in 2021, especially in instances where businesses are letting tenancies lapse as they downscale in the post work-from-home landscape. If you have a property in a mixed building, proactively approach all co-proprietors and be blunt about asking them if there are any problems they’re having or foresee.
You need their honesty to ensure that when the time comes for maintenance, repairs, cleaning, inspections, etc., you’re not going to have any nasty surprises of finding those other parties are dragging their heels to pay for necessary work.
Trouble with credit
Tenants falling behind on a payment is one thing, but tenants leaving you up in the air with any sort of money issue is not going to leave you in a good place. Agreeing to rent on a handshake might seem like the easiest option, but you should always start by having a payment structure in writing that a new tenant can sign.
If tenants fall behind, you’ll fall behind too. Measures like this are going to save you in the long-run.
Trouble with bills
If you have been renting out commercial property to a client this year, and there have been extended periods where they’ve had to keep the shutters down, will you expect water and electric bills to be cheaper?
If you’re saying yes, but don’t have a meter installed, the water company might keep your bills in line with the property’s rateable value, and that will see the price go up. If there are any services the property usually has to pay for that comes out of your pocket, get it seen to now before rates go up in the new year.
Getting help with any facet of commercial property
If you’re looking for some help and would prefer to use a local company, Ross & Liddell is a great choice. They’re one of Scotland’s top commercial property management companies and have a wealth of experience with all types of commercial property & landlord management. With offices in Glasgow, Edinburgh & Dundee, they can help on a local level, something some of the bigger companies without a physical presence in the area won’t have as much knowledge on.
