In this blog, we look at the key differences between managing residential and commercial properties – including sections on maintenance, leases and the nature of the manager/tenant relationship.
Maunder Taylor manages both categories of property for clients in North London and Hertfordshire, and there is a section on their services as well.
This article is a three-to four-minute read.
Property management is an essential aspect of our operations that involves overseeing and maintaining properties on behalf of owners. While they share certain similarities, they also have significant differences that cater to their respective sectors.
Understanding these differences can help property owners make informed decisions relating to the management of their assets.
Commercial and Residential Property Management from Maunder Taylor
At Maunder Taylor, we offer commercial and residential property management services in Potters Bar, Barnet, and many other areas in North London and Hertfordshire. You can also come to us for property valuations, advice on rent renewals, and any property-related dispute which you may be involved in. Maunder Taylor also functions as an estate agent, with residential and commercial sales across North London and Hertfordshire.
Maintenance
Maintenance needs vary greatly between residential and commercial properties. Residential properties require regular upkeep to ensure the property is habitable, such as plumbing repairs, appliance replacements, and (in some cases) garden care.
Commercial properties involve more intricate systems, such as heating and ventilation, lifts, and office equipment – usually computer systems these days. Maintenance costs are usually higher, even though the property isn’t always occupied around the clock.
The Manager/Tenant Relationship
The relationship between the property manager and the residential tenant is a personal one; there are likely to be far more regular interactions between the two parties, and not just over the matter of rental payments. Residential tenants are more likely to come to managers with complaints (and potential repair issues) as well as more general questions.
With commercial tenants, the relationship is more transactional; the focus is placed more on maintaining the function and marketability of the property. Commercial tenants are businesses, so need a manager (or managing company) that understands their operational needs, which may be retail or industrial in nature. Communication has to be done on a more professional basis and is more likely to take place during regular business hours.
Lease Structure and Duration
Residential leases are typically shorter than their commercial equivalents, and increasingly regulated to protect tenants, thanks to recent legislation brought in by the Labour Government (for more information, see our previous blog here).
Commercial leases tend to be more long-term (often lasting five years or longer), more complex, and the result of heavy negotiation. The commercial tenant is also more likely to be responsible for any ongoing maintenance and repairs.
Residential Property Management in Potters Bar from Maunder Taylor
At Maunder Taylor, we offer residential property management services across North London and Hertfordshire. We specialise in block management and look after flats on behalf of all types of clients, including Resident Management Companies, RTM Companies, freehold companies and investor landlords.
We recognise that cooperation between the managing agent, the client, the lessees, and the service providers, is the key to success. We manage our properties according to the terms of the leases, the law, the RICS Residential Service Charge Management Code, the ARMA Consumer Charter and ARMA Standards.
For more information on our residential block property management services, follow this link; and if you have any block management queries you can also call 01707 665 666.
Commercial Property Management in Barnet from Maunder Taylor
We also offer a tailor-made commercial property management service in North London and Hertfordshire. Whether you have a financial stake in a single shop or a parade of stores, an industrial estate or a multi-storey office building, we can help manage it for you.
We will always be looking to improve the value of your property asset, so can supervise any development and refurbishment work, as well as deal with all the administrative paperwork that comes with such an investment.
For more information on our commercial property investment services, click here or call us on 020 8446 0011.
FAQS:
Q: Which offers the greater rate of return as an investment – commercial or residential property?
A: In many cases, commercial property offers a higher rate of return. The tenant is likely to be more financially secure, you aren’t as responsible for repairs, and rent is usually payable well in advance. (See also our previous blog post here). However, commercial investments may be more susceptible to wider economic changes – such as the Covid-19 outbreak and the effect it had on the whole sector.
Residential property investment may offer lower returns, but it is generally considered to be more risk-free.
Q: What are the current categories of commercial property in the UK?
A: There was a wide-ranging shake-up of the categories just over five years ago. A new E category was introduced to now cover any buildings or premises which are used for Commercial, Business and Service purposes. For more information, see our previous post here.