What questions should I be asking when engaging with a commercial property agent

[Lawson@CBF]

I have taken on a retail unit in the centre of Gloucester and about to meet a few commercial agents to contract them to fill and mange the tenants.

Any advice on finding the right agent?

 

[Root 66 Woodshop]

make sure that they inform you of ALL the charges they will CHARGE you... so that nothing is a surprise when they fail to get a tenant in for you.

My Landlord has (non-commercial) has 8 properties, decided a couple of years ago he needed to pass workload on as he didn't have enough time to do everything he wanted to do... used a well known agent - who charged him 2 months rent in advance... PLUS despite him passing the property over with a tenant in... they charged him a finder's fee for getting the tenant to sign THEIR contract!

3 months later he got his first rent in... when the tenant left 12 months later because of their stupidity to be honest... they charged him the same 2 months rent in advance plus another finder's fee for getting a tenant in...

My Landlord has always refused DSS these muppets put in a lass who was on DSS - 6 months later... still no rent, she was only pocketing it... guess who got charged for late payment... My Landlord!! yet he was still paying the bloody mortgage and the agents decided it was HIM who was to be charged because they hadn't received their 10%!!

Did they sort out the rent arrears? Nope... they just let it go on for 6 months without a word then wacked in a big bill to the Landlord.

So he's back to dealing with his properties again, including the repairs to the one house that the DSS lass decided to trash... roughly going to cost him £2000 for repairs.

Charming isn't it.

 

[The Byre]

I have rental properties and I manage them all myself. All the agents I have spoken to, failed the "I want to talk to your other clients first!" test.

 

[Lawson@CBF]

Thanks for the feedback. I have residential properties and agents in place that we trust. But commercial office space and retail units are new to us.

I guess a tenant is the same kettle of fish but the law of 'limited liability' kicks in for businesses looking to move into the spaces. I feel a personal guarantee being brought into play...

 

[Talay]

No roll over commissions.
Refunds for crap tenants who fail to meet obligations - agent lack of due diligence.
You own the tenant, not the agent - watch this one carefully - including your residential.
All fees known in advance and signed off as such by one of their directors, not some lacky.
Any repairs to be cost plus (within margin of cheapest on market), not some £250 to change a light bulb bull5hit.
Look at the tenant side of any contract - what are they screwing the tenant for, if anything ?
You want all interest passed on, not them going to sleep as soon as someone makes an inquiry or offer. You also want to hear of interest and offers after you receive an offer or have accepted one.
References from existing landlords - do this yourself - where places are up for rent, get the landlord's details by registering for the Land Registry portal and downloading the existing or prior lease.
Copies of previous leases available to hand.
Service charge add ons for tenant - will piss them off.

Quite simply, you won't find any who will do half of this nevermind all. They are nearly all crooks / incompetent / thieves etc.

 

[Lawson@CBF]

Brilliant. Honest feedback is just what we need.

Thank you.

 

[Talay]

Just thinking about one I was negotiating on recently. It was around 5000 sqft and had a rent of around £60k.

You'd think they'd be pretty hot to maintain a relationship on this one given the likely commission and that they already know my bona fides.

But no, emails not returned, at least not all. Phone messages simply ignored. When information came it was missing items and required me to keep chasing. Even escalating to their directors, one of whom I know, didn't really help.

So I go to the landlord direct. Now the landlord is pi55ed off that they didn't get half of my emails from the agent but still the agent has the landlord on some contract which precludes a get out for poor performance or what I consider breach of contract.

So it ends up that even after we eventually get Heads of Terms agreed (google this if you don't know), we still didn't get over the line.

Now, solely due to the agent, the landlord has no rent and I have no property.

I view them as locusts.When times are good, they prosper and breed and in times of famine, many die off, but not all. Yet even in moderate times, I do not see their worth and if they were on 2 months' rent as a commission, that would have been £10,000 on this deal and if they can't be motivated by ten grand, then what use are they ?

 

[JessicaSmithTBU]

Interesting