What landlords need to know.
Vacancies are an inevitable part of owning commercial property. There are steps landlords can take to minimise both how often they occur and how long a property remains vacant.
Retain good tenants where you can
In the current market, one of the best ways to minimise vacancy is simply to retain good tenants. While achieving the best possible rental return is always important, this should also be weighed against the potential cost of losing an established tenant, including vacancy periods, leasing fees, incentives and other costs associated with securing a replacement.
When a tenancy does become vacant, presentation is important
Of course, not every tenant will stay. A vacant premises should be clean, tidy, secure and, importantly, watertight. Any obvious maintenance issues should be addressed, rubbish and unwanted items removed, and the tenancy presented as a space a prospective tenant can easily imagine occupying.
This doesn’t necessarily mean spending significant money renovating a property, particularly when an incoming tenant may undertake their own fitout, but a well-presented and maintained space will generally make a much better first impression than one that appears neglected.
Make good and the condition of the premises
The condition of the premises at the beginning of a lease is also important for another reason: make good. A tenant will generally be required to return the premises at the end of their lease in accordance with their lease obligations.
Handing over a tenancy in good condition and properly documenting that condition at the commencement of the lease provides a clear benchmark when the tenant eventually vacates. If a premises is handed over with existing damage, leaks or outstanding maintenance issues, determining responsibility years later can become much more difficult.
The bigger picture
Ultimately, minimising vacancy is not only about finding a new tenant quickly. Looking after existing tenants, planning ahead for lease expiries and maintaining properties to a good standard can all help reduce vacancy periods and protect the property over the longer term.
Reach out for a private discussion about how we can help maximise your property’s potential.
