Whether a professional investor or an owner by default, owners of commercial property must decide whether to manage properties themselves or to use a managing agent.
If you are not a property professional yourself, you should be aware that ignorance may not be bliss and it might just be that appointing a firm of specialist commercial property managers is the wisest thing you do. In our experience many owners are not aware of what they don’t know and do things in good faith that either may either be lawful or unwittingly against their own interests.
Here, we’ve summarised just some of the advantages of using a professional managing agent:
Save Time
Managing properties and tenants and staying on top of new legislation, regulations and case law can be time-consuming. Incidents can also crop up when least expected or most inconvenient. For owners with busy lives, who do not have the time, it makes sense to instruct professionals who do have the time and expertise to take the worry and hassle of managing your property from you.
Compliance
Whether in relation to health and safety, or the observance of other statutory and legal requirements relating to electricity, gas, fire and asbestos for example, a managing agent will ensure that no onerous (and potentially costly) obligations are being overlooked.
The division of responsibilities between landlords and tenants is often unclear in the minds of the parties, particularly where the landlord retains some responsibilities, such as for common areas. A managing agent will provide that clarity and ensure you’re not paying for things that aren’t your responsibility.
The impact of the Minimum Energy Efficiency Standards (MEES) is not being fully acknowledged by many owners, perhaps because they have become used to passing on most property related obligations to their tenant. Failure to understand and address the requirements of the regulations poses a significant financial risk for all property owners.
Insurance
An alarming number of UK commercial buildings are underinsured compared to the likely actual cost of rebuilding. This could leave you seriously out of pocket in the event of a claim. A managing agent will help make sure your properties are appropriately and adequately insured.
VAT
VAT on commercial property is often misunderstood. Good managing agents will help you decide whether you should elect to charge VAT or not and will moreover take care of the administration, including liaising with HMRC.
Adding Value
The news headlines don’t tell the whole story about the commercial property market. There are always local factors that could affect the value of your property. A managing agent will help you make better informed decisions to protect your interests or add value.
Peace of Mind
In our experience, this is probably one of the key advantages of instructing professionals. Where managing agents are Chartered Surveyors, clients also have the comfort of knowing that their advisers meet the high minimum standards of RICS (Royal Institution of Chartered Surveyors) and therefore have insurance cover and are regulated in the handling of client money.
By engaging Hicks Baker (Chartered Surveyors) to manage your property, you can achieve greater long-term financial certainty and more robust risk management.
To find out more contact Hicks Baker on 0118 959 6144 or email info@hicksbaker.co.uk.
