Help with my renting my first commercial unit
Discussion
I'm now in a position to rent my first unit. I have found one that looks promising, the rent and rates are affordable and it has the correct permissions. I have spoken to the agent and am viewing it next week.
Now I've read enough threads on here to know that I should appoint a surveyor to advise on transaction. My first question is can someone recommend a suitable surveyor to act for me - or perhaps there is someone on here? (I'd like to pass the business to a fellow PHr if possible). The unit is in West Kent.
Secondly, can someone give me a ball park figure of what I should be paying for such a service? The unit is approx 4,000 sqft if that makes any difference.
Finally, I'd welcome any further advice, particularly what the current climate is like for negotiating rent free periods.
Cheers...
Now I've read enough threads on here to know that I should appoint a surveyor to advise on transaction. My first question is can someone recommend a suitable surveyor to act for me - or perhaps there is someone on here? (I'd like to pass the business to a fellow PHr if possible). The unit is in West Kent.
Secondly, can someone give me a ball park figure of what I should be paying for such a service? The unit is approx 4,000 sqft if that makes any difference.
Finally, I'd welcome any further advice, particularly what the current climate is like for negotiating rent free periods.
Cheers...
Most local authorities still have a property portfolio that they rent out for investment purposes - I suggest you try and see what the one in the area you are looking at has available to rent as an initial guide? As has been said, the repairing obligations/liabilities that you agree to will also have a direct influence on the rent you are paying. Remember to include in your running costs as buildings insurance and also estate service charge unless you're looking to pay an all inclusive rent.
As for what a surveyor would charge you, it'll depend on the level of rent likely to be paid etc. As to whether they'd charge you a % fee or possibly a flat fee. Also, try not to sign a lease where you are personally liable I.e. A personal guarantee, even if you have to pay some form of rent deposit instead.
As for what a surveyor would charge you, it'll depend on the level of rent likely to be paid etc. As to whether they'd charge you a % fee or possibly a flat fee. Also, try not to sign a lease where you are personally liable I.e. A personal guarantee, even if you have to pay some form of rent deposit instead.
For a Surveyor, budget 10% of rent. Suggest an incentivised basis if you wish also.
By all means try to get LL responsible for all repairs - but it will cost you. Take into account condition and then take a view.
Costs to expect are rent, insurance, service charge. Don't forget to budget for a solicitor. Good ones are not cheap, but worth their money!
By all means try to get LL responsible for all repairs - but it will cost you. Take into account condition and then take a view.
Costs to expect are rent, insurance, service charge. Don't forget to budget for a solicitor. Good ones are not cheap, but worth their money!
voicey said:
Finally, I'd welcome any further advice, particularly what the current climate is like for negotiating rent free periods.
How long has the unit in question been empty? AIUI the landlord will be paying the full rates on it and will be keen to offload that burden. I'd ask for six months if it's been empty for a while.Also, what are you going to do in it? Something car oriented I trust.
singlecoil said:
How long has the unit in question been empty? AIUI the landlord will be paying the full rates on it and will be keen to offload that burden. I'd ask for six months if it's been empty for a while.
Also, what are you going to do in it? Something car oriented I trust.
Thanks, It's been empty for a while so I'm aiming for six months rent free.Also, what are you going to do in it? Something car oriented I trust.
And yes, definitely car related.
Best advice we were given was to create your own schedule of condition and have it incorporated into the lease. Almost all commercial leases will be "full repairing" so its important to get recorded what the state of the place is /was when you took it over because you will be obliged to return it to that condition when you leave. Basically just take a bunch of photographs inside & out & create a document with comments as to what they are showing (i.e. damp patch here, damaged brick there etc). It won't take you long & it may save you a lot of aggro.
Gassing Station | Business | Top of Page | What's New | My Stuff