“10 Secrets to Ensure Your Commercial Rental Property Stays in Tip-Top Shape – Landlord Must Know #5 will Shock You!”

Regular Inspections – Conduct routine inspections of the property to identify any maintenance issues or potential problems. Check for leaks, cracks, signs of wear, equipment malfunctions, and safety hazards. Address these issues immediately to prevent further damage.

Without proper maintenance, any commercial property will gradually fall into disrepair. It will cost much more to repair a neglected building – a stitch in time. Without a proper maintenance plan and regular care, the building will deteriorate and cost much more in the long run.

Commercial leases tend to be long: 5, 10, or 15 years or more, so it’s important for commercial owners to have some control over repairs and maintenance.

Good commercial tenants will want to keep their property in good repair because a dilapidated building will have an adverse effect on their business, especially when their clients visit the building.

But as tenants and not owners of the building, there is often a reluctance to spend money on it: this is why the commercial landlord must have a strategy to ensure that necessary repairs are carried out.

commercial lease

The key to this process is the lease, and the maintenance clauses it contains. Unless the lease is short, less than six months, the ideal for a commercial landlord is to rent the building on a comprehensive repair and insurance (FRI) lease.

This is the traditional institutional lease where the owner has a clear and unencumbered return on investment: the tenant pays for everything, including insurance, security checks, repairs and replacement at the end of the lease term; see deterioration.

The lease must include a Conditions Schedule that records in detail the condition of the property at the start of the lease term, usually drawn up by an independent party, a registered surveyor. The schedule, whether provided by the landlord or the lessee, is agreed upon from the outset by both parties. It is a replacement reference when drawing up a Deterioration Calendar.

autonomous buildings

When the lease is for a stand-alone building, that is, where the tenant occupies the entire building, maintenance responsibilities are somewhat simplified. Generally, the landlord delivers the building in good condition to be a tenant, in accordance with the Conditions Schedule, complying with all applicable regulations, such as use planning, electricity, gas and fire safety.

Thereafter, the responsibility, if the lease is properly drafted, falls on the lessee to maintain the building and comply with all necessary regulations, and to return the building in a well-maintained rentable condition. Otherwise, the lessor resorts to the dismantling procedure.

Multi-occupancy buildings

A multi-occupancy building presents more challenges and more work for the owner. Since no tenant can assume responsibility for the entire building, the owner or the owner’s managing agent must coordinate and organize the necessary repairs using a maintenance schedule. For example, annual gas reviews, five-yearly reviews of the electrical system, annual reviews and maintenance of fire alarms and fire equipment, painting every 7 years, etc.

In general, the tenant will be responsible for their own internal repairs and decoration, workplace safety, etc., while the owner will be responsible for the external structure (roof, walls, windows and doors) and common areas.

The responsible person

Fire safety is the big issue here. The law places the responsibility for fire safety in the building, as well as the safety of the occupants, workers and visitors in the hands of “The Responsible Person”. In practice, in this type of multi-occupancy building, this responsibility is often shared between the owner and the tenant in the manner described above: the tenant (employer) in relation to the workplace and internal elements, and the owner/ agent for external controls and security. and common areas.

The person in control of the premises (managing agent) or the owner together with the lessee will be liable where the premises are not a workplace, such as an unmanned storage warehouse.

In addition to electrical and gas safety checks, the Regulatory Reform (Fire Safety) Order 2005 imposes various duties on the “Responsible Person” with respect to fire safety in commercial properties.

Duties under this Order include, but are not limited to, organizing general fire precautions to ensure that certain people are safe in the event of a fire, carrying out a fire risk assessment, and keeping it under review.

It is a good idea to have an initial risk assessment carried out by a fire consultant, a specialist who will draw up a detailed outline. This can be repeated every 12 months by the specialist or simply reviewed by the landlord or agent.

Periodic inspections should be carried out and documented to ensure that in all facilities, fire alarms are activated and tested weekly, all fire safety equipment is readily accessible and checked annually, and that fire doors, emergency escape routes and exits are properly maintained and maintained. In working order.

The “responsible” found guilty of breaching the Order will be punished with a fine and, in the most serious cases, with a prison sentence if the procedure is brought before the Crown Court.

General maintenance of commercial properties

Modern buildings have systems that need regular maintenance. HVAC systems, heating, ventilation and air conditioning (HVAC) systems are essential for a comfortable and efficient occupancy. Schedule regular maintenance on HVAC units, including filter replacement, duct cleaning, and inspection for any problems. This will ensure optimum energy efficiency and reduce utility costs.

Service charges and disputes

When a landlord adheres to a regular maintenance plan to keep the property in good condition according to schedule and without unnecessary work, most tenants will appreciate this as it improves their business.

However, experience shows that some tenants, especially if your business is struggling, will resent having to pay money for repairs, maintenance and foundation work in addition to the annual building insurance charges. Typically, the landlord will finance repairs and maintenance and apportion the costs among the tenants in the building according to a formula set out in the lease, usually based on square footage.

When disputes arise, often because the tenant is arguing about the need for the work or because the repairs are too costly, it may be necessary to pursue court action. Landlords cannot afford to allow one tenant to avoid paying service charges while others pay in full.

In some cases, it may be possible to resolve disputes without going to court through an independent mediation process, but if impasse is reached, it may be necessary for the parties to agree to an independent evaluation of the work by a qualified third party. . that is, a chartered surveyor.

Schedule inspections, safety checks and maintenance

Establish a schedule of weekly, monthly, and yearly tasks using a checklist, and make sure they get done with any work identified as necessary to get done without delay. Don’t put off minor repairs or safety issues, as they can become major issues over time.

Do not forget external elements such as accesses, paths and dependencies that can represent security problems for which the responsible person is responsible. Misplaced roads, potholes, sidewalks and pavers can cause safety hazards for vehicles and people arriving on the property.

Prevent pest infestations

There is another problem that regular inspections should identify and that is pest infestations that can easily get out of control. Just like neglected maintenance issues, the longer this goes on, the worse it can get. With a serious outbreak, you may need a pest control specialist to deal with the problem.

conclusions

There is a lot of work involved in keeping up with leases in a multi-occupancy building, making sure the building is kept in top condition, and ensuring it meets critical safety standards.

There is a lot to schedule, so you might consider hiring a professional managing agent to take on some of these responsibilities. This will cost money but has the advantage of having an independent person to decide what is required, and that may be more acceptable to your tenants.