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Office Tenant’s Guide to Commercial Real Estate Tenant Representation

By Stefan Rogers

Unlike brokers that represent landlords and owners, Tenant Representation brokers specialize in representing the best interests of tenants and space users only on the lease and purchase of commercial real estate.

The value a business can gain from hiring a tenant representation broker to handle its corporate office space, just as it would hire a CPA for financial and an attorney for legal matters, is so significant, it’s essential every business owner understands the benefits. With real estate typically being a business’s second largest expense, companies can’t afford to overlook the benefits of professional tenant representation services when thousands of dollars are ultimately at stake.

Successful, savvy business owners either employ an in-house corporate real estate director to manage their property, or outsource their requirements to a professional tenant representation advisor. Those that don’t are missing out – on potentially thousands of dollars in lost revenue and wasted money that could quickly and easily be converted into profit!

There are no savings to be had by not hiring a tenant representation broker.

Every listing agreement compensates the landlord’s broker with an industry standard fee, which the landlord’s broker shares with the tenant’s/buyer’s tenant representation broker if they have one. This incentivizes the landlord’s broker to find a tenant that isn’t benefitting from their own tenant representation broker, because the landlord’s broker will receive the entire fee for negotiating against them! There is no discount to be had by not hiring your own tenant representation broker so you should take advantage of this service because the full commission WILL be paid on every listing whether you are represented or not. Furthermore, tenant brokers’ negotiating expertise and intimate knowledge of commercial real estate can easily save you an average of 30% in occupancy costs in today’s market, several times greater than the full listing fee!

You can quickly and easily save thousands of dollars by hiring an expert commercial real estate negotiator.

An experienced tenant representation broker’s negotiating expertise can typically reduce your occupancy costs by approximately 30%, several times the total commission paid on a commercial lease transaction! The office leasing and buying process is complicated and risky and should only be handled by an experienced professional. Just as you hire a CPA for financial and an attorney for legal matters, hiring an expert tenant representation negotiator to navigate the complicated and risky commercial real estate process is essential to achieve the maximum money and time savings, protection and benefits for your business.

Avoid conflicts of interest unlike a landlord’s broker, your tenant representation broker is 100% committed and accountable to you only.

Just as a landlord’s broker’s obligation is to represent their client’s best interests, not that of a tenant’s, your tenant representation broker’s obligation is to represent your best interests only. Hence, you expose yourself to a huge conflict of interest when you use one or several landlord brokers to “negotiate” for you on their own listings, and you are far less likely to receive the level of service you would from a tenant representation broker who is committed and accountable to you only as their client. Unlike a landlord’s broker, your exclusive tenant representation broker is 100% accountable and committed to you because they have a legal responsibility to represent your best interests, not those of a landlord.

Unlike brokers that represent landlords and owners, tenant representation brokers avoid conflicts of interest by specializing in exclusively representing commercial tenants and space users. The best way to avoid a conflict of interest and ensure your broker is representing your best interests is to execute an agreement acknowledging their legal obligation and duty as your representative. By doing this, you can also expect a higher level of service, commitment and accountability as the broker knows he will ultimately be rewarded for his efforts. Owners and landlords exclusively engage their own brokers to guarantee the best possible terms and you should too!

Save hours of your valuable time and thousands in company dollars by hiring a professional to manage the real estate process for you.

When you’re running a business, time is money, and searching for space and negotiating office lease transactions often takes longer than expected! The commercial office leasing and buying process is extremely time consuming and can place a huge drain on company time, money and resources. Not only do tenant brokers advise you on the best strategy so you don’t head off in the wrong direction, they’ll save you huge amounts of time by preparing property listing reports, scheduling and conducting property tours, submitting proposals, negotiating and reviewing leases and managing tenant improvement and relocation projects. Outsource everything but the decision making to your tenant representation broker and benefit from the peace of mind that they will professionally manage the process and save you a huge amount of personal time and money while you focus on running your business. Your exclusive tenant representation broker will of course also save you thousands of dollars in occupancy costs by negotiating the maximum concessions on every transaction.

Protect yourself from exposure to real estate risk.

The office leasing and buying process is complicated and risky. Just as you would hire a CPA to manage your taxes and an attorney to represent you on legal matters, the real estate process should only be managed by an experienced professional that understands all the pitfalls and intricacies of the transaction. We take risk out of the equation by professionally and expertly managing the process down to the smallest detail and advising you on the most risk-free strategy for achieving your objectives and protecting your business from unexpected real estate risk.

Benefit from professional tenant representation to achieve the best results for your business.

Due to the relatively inert nature of real estate, maximizing the operational efficiency of your office space can be a challenge, especially if your business and your space needs are evolving. Opportunities for businesses to grow and change are often hindered due to the restrictions placed upon them by their office space. Don’t let your office space hold you back! Find a tenant representation broker with the expertise you need when expanding, consolidating, or relocating facilities, renewing or restructuring existing leases or purchasing a commercial property for your business.

A tenant broker’s role is is to provide you with the comprehensive data and impartial advice you need to make the right corporate real estate decisions and, in turn, provide the most economical, operationally effective and risk free real estate solutions for your business.

Get instant access to every available real estate listing and opportunity.

The most important phase of the real estate process is identifying and qualifying suitable opportunities to lease or purchase. Without a tenant representation broker it would be extremely time consuming and futile to attempt to thoroughly survey your target market as, unlike the residential market, the vast majority of commercial office space listings are not available online. Furthermore, searching for commercial space through landlord/listing broker is unlikely to give you exposure to every available opportunity as they may only introduce their listings, and calling numerous brokers is extremely time consuming. A landlord broker is encouraged to steer tenants to their own listings as they receive double the fee if they represent their client, the landlord, as well as the tenant. Tenant representation brokers have no incentive whatsoever to steer you to particular listings and are completely impartial as they are representing you, the tenant, and are subject to the same listing fee structure regardless of the property.

By hiring a tenant representation broker, you can be guaranteed exposure to every available listing opportunity and also receive impartial, objective advice on the suitability of the space to your business needs. A good tenant broker will go to great lengths to assist clients in determining their specific real estate requirements and locate and evaluate properties that meet their exact needs. Not only should they have access to all the commercial real estate multiple listing services, but their in-depth knowledge of specific commercial real estate submarkets will give you access to all off-market availabilities and pocket listings to guarantee you access to every opportunity. They will also prepare a comprehensive survey of every commercial MLS database, leverage their intimate knowledge of the marketplace to research every suitable off-market property and aggressively market your requirement to every owner and listing broker. This creates powerful negotiating leverage as multiple landlords compete for your business!

For free advice, a no-obligation consultation or lease audit to determine the cost-savings and real estate strategies available to you, call Stefan Rogers direct: (949) 263 5362.

By Stefan Rogers, MRICS: (949) 263 5362/ srogers@voitco.com
Commercial Tenant Solutions is part of Voit Real Estate Services – 2020 Main Street, Suite 100, Irvine, CA 92614

Voit Commercial Tenant Solutions’ corporate real estate services, strategies & solutions save you valuable time & money & protect you from real estate risk by minimizing your commercial real estate costs & maximizing the operational efficiency of your corporate real estate. As expert tenant representation advisors, we provide the power you need to gain a competitive advantage over landlords & secure maximum value from your real estate. Voit Commercial Tenant Solutions is part of Voit Real Estate Services.
http://www.voitcts.com

Article Source: http://EzineArticles.com/?expert=Stefan_Rogers
http://EzineArticles.com/?Office-Tenants-Guide-to-Commercial-Real-Estate-Tenant-Representation&id=2710327

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Good Tenants – Learn Twelve Ways Landlords Keep Them

By D. Maurice

Happy, Long-term Good Tenants Paying On Time

How to Create a Win-Win Relationship for the Both of You!

After you’ve found your tenants, how do you keep them? Establish a friendly, pleasant, business-like relationship with your tenants, so they’ll want to renew again each year. By using one or a few ideas below, you will learn how to keep good tenants. The following are some suggestions that apply to residential landlords, landladies, and property managers.

1. Move-in Gifts

Move-in gifts are a nice way to welcome your new tenants. Place these gifts in the apartment with a red bow on them before the tenant moves in. A (plumber’s) plunger and a garbage disposal wrench, known as an Allen wrench, can work wonders for your tenants. Simple idea, right? These small, practical gift items will come in handy when the plumbing backs up or the garbage disposal stops working. Often overlooked, these items are not something people think of, but these move-in gifts will save you time and money with fewer maintenance trips.

2. Welcoming Gifts

A welcome gift establishes a positive relationship with your good tenants. Present the gift after the first eight to twelve weeks of tenancy. As always, make sure the tenant(s) rent is current before presenting your welcome gift. This effective gesture shows the good tenant(s) you are a thoughtful landlord. A few examples of some welcome gifts are:

• Hanging flower baskets of petunias;
• Small potted flowering plants such as pansies; or,
• Small fruit baskets from your local grocery store.

Present your gift in person. These inexpensive gifts will surprise your tenant(s). And go along way towards building goodwill. This is also a good time to do a quick “look around” inspection. This way you can determine if the tenant is keeping the apartment clean.

Also, take this opportunity to observe any unauthorized move-ins (e.g., a person or pet.) If there was, then politely address the issue immediately. Mail a written letter of notification acknowledging the unauthorized move-in. A copy of the lease should also be mailed to the tenant. Anyways, you will be able to address concerns while you’re there, creating a win-win relationship.

3. Renewal Gifts

Renewal gifts are small reward items of appreciation you may wish to provide to your tenant(s). A small incentive goes a long way. And you’re creating a positive relationship between yourself and the tenant. Here are the benefits of lease renewal:

• You don’t have to advertise for another good tenant;
• You don’t have to screen calls;
• You don’t have to show the apartment only to wait for no-shows;
• You don’t have to build a new relationship with a new tenant; and
• You don’t have to educate new tenants about your do’s and don’ts.

Renewable gift suggestions:

• A gift certificate to a local restaurant;
• A bouquet of fresh cut flowers; or
• A special gift certificate from a local supermarket or gardening supply center

These renewable gifts range from $25 to $50. This amount depends on your budget. And, continues to build a positive relationship with your good tenants. Presenting a renewal gift in person demonstrates a caring attitude about your tenant(s).

4. Holidays

Holidays are a great time to acknowledge your good tenant(s). There are a number of holidays to choose from and depending on your time, schedule, and workload this is a personal choice. Generally, a trouble-free idea is to send a non-denominational holiday greeting card, letting your tenant(s) know you’re thinking of them.

Alternatively, such as a week before Thanksgiving, purchase a turkey as a gift, along with one you buy for your own family. This provides the tenant(s) with a nice Thanksgiving meal while saving you time and money. Either way you’re creating another win-win relationship with your good tenants.

5. Emergencies

Communication and some well-established rules are vital. Let your tenants know your property management schedule. For example, calls regarding minor problems, 8:00 a.m. to 8:00 p.m. during the week, excluding Sundays. Educating your tenants early is a necessity for your peace of mind. Following are examples of some real life non-medical emergencies.

It’s 9:00 p.m. on a New England Thursday evening. The winds are strong and it’s snowing lightly. The temperature has reached 30 degrees below zero. The phone rings and our tenants are complaining they have no heat. Quickly, a call is made to the oil company. The oil delivery is made and this remedies the situation. The landlord follows-up to make sure everything is o.k. Our tenants know even with freezing temperatures, we do care and act immediately.

Here’s another example, one of our tenants’ decided to use the laundry facility in one of our empty units. We approved her authorization to do laundry. While she was there, she discovered water spraying from underneath the bathroom sink. Already, two inches of water had accumulated. The bathroom and most of the surrounding kitchen is drenched. She called in a panic. “The water is spewing from underneath the bathroom sink,” she says. I was unsure what to do. I called my best friend, my husband, and he remedied the problem within two hours. The tenant did not have to call about this emergency. She chose to, demonstrating the importance of good, strong relationships with your good tenants.

6. Maintenance

Your property rental maintenance system will increase your real estate value and cash flow. Hence, you will be able to charge a little more rent for the up keep. When you’re scheduling maintenance projects for the year, make a checklist. Your checklist should include preventative maintenance; cosmetic, simple upgrades, and tenant renewals. Below are some simple guidelines for an effective property maintenance system.

Preventative:

• Replace the leaky toilet system;
• Replace worn out faucets;
• Replace a run-down refrigerator;
• Replace an unsafe stove;
• Replace a leaky roof;
• Replace inefficient or a potentially harmful furnace;
• Schedule pest control care;
• Seal cracks to prevent loss of heat or pest intrusion;
• Clean or check the filter in gas heaters;
• Check air conditioning unit for efficiency.

Cosmetic:

• Cutting, trimming trees, flowers, etc.;
• Landscaping – for example, add crushed stone around the building for extra drainage;
• Painting – freshen up trim, walls, ceilings, floors, railings, lattices, and so forth;
• “Curb appeal;” planting flowers and shrubs, lightly washing the outside of the building.

Upgrades:

• Replace old, worn out carpet;
• Replace or install new floors;
• Add ceiling fan(s) to provide extra comfort during summer months;
• Add a microwave.

Renewed tenants:

• Repaint walls, moldings, casings, ceilings;
• Provide new window screens;
• For more ideas, see the long-term tenants of 3 years or more section 10 below.

7. Drive-by or Walk-around Property Inspections

Throughout the winter months, you should drive-by your property every two months. Particularly if you don’t live nearby. Other areas without snowy winters may require more or less property attention. During your drive-bys or walk-around inspections, look for obstructions on the front porch, on the deck or the entranceway.

And depending on your geographic location, pay attention to the condition of the property’s lawn, flowers, and shrubs. In the spring, summer and fall a monthly drive-by or walk-around is sufficient. Below is a list of items to check:

• Bees nest – If it’s small and you know you can remove it safely then do so. The best time to remove a bee’s nest is in the morning. It’s cold and the bees are not flying in and out as much. If you’re unsure ask the person at the local hardware store for help. Pick up a can of bee spray eradicator while you’re there. However, a professional pest control company is the easiest solution to remove the nest safely.
• Clutter on the front and back porches or decks;
• Water to the outside hose is turned off;
• Lawn is mowed;
• Do you need to paint the exterior of the house, steps, fire escape, garage, etc.?
• Do you need to tar or replace the drive way or roof?
• Observe any illegal or excessive activity by the tenants.

Are people going in and out of the property to frequently?

• If the tenant happens to be outside ask if they have any concerns or requests.

8. Walk through Inspections

Property inspections are a positive way to build strong relationships with your good tenants. Tenants who call with small problems are often viewed as pesky tenants. However, inspections performed quarterly or bi-annually will likely make your tenants more comfortable. Good tenants prefer telling you their maintenance problems in person rather than over the phone. You can also correct most tenant problems immediately.

9. Death in the Family

Acknowledging a good tenants loss is a courteous and warm gesture. Send the tenant(s) a sympathy card, a bouquet of flowers, or a catered platter of food. This goes a long way towards building a long-lasting relationship with your tenant(s).

10. Long-term Tenants of Three Years or More

If you have developed a positive, respectful relationship with your tenant and they renew their lease, than consider their renewal a job well done on your part. Tenants who renew and have been in good standing with you over the last few years will appreciate some updated interior features. Below are a few ideas to make your tenant feel good while increasing your property’s value at the same time.

• Install new carpeting;
• Paint walls, casings, or ceilings;
• Add a used dishwasher or replace the existing one;
• Add a paper towel holder;
• Add a garbage disposal or replace the existing one;
• Provide new screens;
• Provide new light fixtures;
• Provide a new medicine cabinet; or
• Provide a new toilet seat.

11. Good Tenants Recommending Other Possible Tenants

Good tenants will gladly recommend other tenants because the new tenants will become their neighbors. Besides, your property is the tenant’s home and they are more apt to suggest helpful, pleasant, compatible neighbors. In addition, establishing a finder’s fee program is an excellent incentive to encourage your tenants to introduce you to responsible, prospective renters allowing you to minimize your advertising costs and the hassles related to finding new renters, while potentially signing on another good tenant.

Certainly, any finder’s fee program should be in writing, and possibly reviewed by your attorney, so that both the landlord and tenant understand how the program works, specifically how and when fees are to be paid. Retaining good tenants could create an endless pipeline of prospective tenants for you by your tenant’s word of mouth rather than employing traditional, cost-prohibitive methods.

One warning: The same due diligence should be followed with any tenants referred to you by tenants presently renting from you so that you don’t run into problems later on.

12. Provide your good tenant(s) an Information For Your Apartment Form

The Information For Your Apartment Form is important when you or your property manager cannot be reached. Below is a list of subjects the form should include:

• Window areas;
• Appliances;
• Heat;
• Air conditioning unit;
• Security;
• Plumbing;
• Electrical;
• Floors;
• Rubbish;
• Walls and ceilings;
• Miscellaneous;
• Emergency phone numbers;
• Contact manager information.

You can view, the complete form at [http://www.my-real-estate-software.com/apartment.html], so you can keep your good tenants happy and prevent those annoying middle of the night phone calls!

As you begin to integrate these suggestions into the management of your property or properties, you’ll learn how to keep good tenants. When you respect, train, and show some generosity you will create a win-win relationship for the both of you that can last over twenty years or more. Good luck and happy managing!

Article by D. Maurice. D. Maurice is the Webmaster of real estate software, my-real-estate-software.com [http://my-real-estate-software.com], a resource of Professional real estate Software for the Property Rental Manager, Landlord, Investor, Realtor. Real estate software used to Acquire It, Manage It, Market It, and Maximize PROFITS! Please visit her site for more free tips and software used to build your real estate portfolio.

Article Source: http://EzineArticles.com/?expert=D._Maurice
http://EzineArticles.com/?Good-Tenants—Learn-Twelve-Ways-Landlords-Keep-Them&id=46349

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