As a commercial real estate agent, the leasing of property should be a frequent event in your business week.
It is the leasing of property that helps you build links into selling property and also managing property; both of which are a further commission opportunity.
When you think about it, investment property is built around income, and leases and tenants are the foundation to that.
All the more reason for you to be the leasing expert of choice in the local property market.
The best salespeople and property managers in commercial real estate really do know how to lease and in doing so understand leases very well.
Never 'turn your back' on a leasing opportunity simply because the fees are lower, as it is very likely that a future property sale or property management sits therein.
Realistically it is the leasing of property that gives you the great market knowledge and database that investors want.
The rents, the lease incentives, the fitout, and the lease terms and conditions, all make up the data base of knowledge that builds a leasing opportunity into a lease transaction in an investment property.
When a property is well leased it sells faster even in a quiet market.
You are the expert that everyone wants, aren't you! So what should you consider as key elements in your property inspection to lease vacant space? Think about this list:
Seek feedback so that you know if more property inspections are required.
In property markets like this, expect that most prospective tenants are talking to more than one property agent.
For this reason you must nominate your tenants to the landlord after the inspection to ensure that some other agent does not introduce them to the property or the landlord and you then loose commission.
The key to converting a prospective tenant to a lease in a new location is qualification and preparation.
Get yourself sorted with this and your lease transactions will be easier.
It is the leasing of property that helps you build links into selling property and also managing property; both of which are a further commission opportunity.
When you think about it, investment property is built around income, and leases and tenants are the foundation to that.
All the more reason for you to be the leasing expert of choice in the local property market.
The best salespeople and property managers in commercial real estate really do know how to lease and in doing so understand leases very well.
Never 'turn your back' on a leasing opportunity simply because the fees are lower, as it is very likely that a future property sale or property management sits therein.
Realistically it is the leasing of property that gives you the great market knowledge and database that investors want.
The rents, the lease incentives, the fitout, and the lease terms and conditions, all make up the data base of knowledge that builds a leasing opportunity into a lease transaction in an investment property.
When a property is well leased it sells faster even in a quiet market.
You are the expert that everyone wants, aren't you! So what should you consider as key elements in your property inspection to lease vacant space? Think about this list:
- Visit the tenant prospect on their 'patch' to see exactly what they have now.
If they are moving from a particular building this helps you see what they may or may not want in the re-location. - Ask about timing of the move to a new location.
It is possible that their business is seasonal and must achieve the move within a particular time frame? - See if the tenant prospect understands the rental market at the moment in the area to which they wish to relocate.
Questions about gross rent, net rent, incentives, and lease terms and conditions will 'flush' out the knowledge of the tenant prospect. - See what the tenant thinks that they can afford in new levels of rent.
Part of that process will be a question and answer process around rent reviews, lease terms, and options.
If they know what they are doing they will have some clear answers with these topics.
Generally the tenant awareness process does not extend beyond these things so this is where solicitors acting for them will be a wise option at the right time. - Provide a list of buildings that may suit their relocation together with indicative rent budgets.
Part of this process should be the qualifying of the tenant in their ability to afford the buildings nominated.
From the list of building provided, try to reach a smaller short list, and inspect only four buildings at one time; any more than that and you will confuse the tenant, and make decisions harder for them to reach. - Brochures giving the location of the available properties, indicative floor layouts and fit out designs, and the summaries of available services and amenities in each location are very important.
All the more reason not to have a long list of properties to look at, which create procrastination and confusion with the tenant prospect. - With each property inspected you should have an information sheet that displays asking rent, available lease term, available options, guarantees required, and available area.
It is useful to put a 'letter of offer' template in the information pack to assist the lease offer process when it occurs. - When the property inspection is considered reasonably serious, it pays to have a copy of a draft lease for the property on hand and available for the tenant to review.
They sometimes like to refer to it or forward it to their solicitor to appraise.
Seek feedback so that you know if more property inspections are required.
In property markets like this, expect that most prospective tenants are talking to more than one property agent.
For this reason you must nominate your tenants to the landlord after the inspection to ensure that some other agent does not introduce them to the property or the landlord and you then loose commission.
The key to converting a prospective tenant to a lease in a new location is qualification and preparation.
Get yourself sorted with this and your lease transactions will be easier.