Improving a residential property’s value is a relatively straightforward affair, particularly if it’s owner-occupied. You can make the improvements to your own home while continuing to live there (and you can put up with any resulting problems, secure in the knowledge that you will benefit in the long term). However, if you are a commercial property owner with a tenant currently in situ, the position is more complicated. The tenant will still need to make a living, and you don’t want to do anything which will deprive you of a valuable source of income.
Maunder Taylor are leading property valuation surveyors in Potters Bar and the surrounding area. Here are a few key ways in which you can still improve your premises’ value, while it’s still being occupied and used.
Check Your Current Lease
Evaluate what the going market rental rate is for your type of property and consider lease renegotiations, if the current agreement allows for it (or warn the tenant that you are considering this course of action when it runs out). Offering flexible lease terms or additional amenities can attract high-quality tenants willing to pay a premium.
You don’t want to lose a responsible tenant, so take care not to increase the rent too much in one go – otherwise you may lose them at the end of the current agreement. It’s also a good idea to check what the lease says about ongoing improvements (if anything) in case you are considering any of the options listed below.
Generally landlords aren’t allowed to make any alterations if it affects the tenant’s ‘quiet enjoyment’ of the premises, which is enshrined in UK common law. This also means that landlords must give reasonable notice (usually at least 24 hours) before entering the property for repairs or inspections, and they should only enter at reasonable times.
Equally, the tenant should give reasonable access for repairs to be carried out in the property. This is mentioned in The Housing Act 1988 and The Landlord and Tenant Act 1985.
First Impressions Still Matter…
Kerb appeal applies just as much to offices and factories as it does to homes. You should be able to ensure that the outside of the building is well-maintained, with fresh paint, clean windows, and attractive landscaping, without affecting the business inside. And don’t forget to have the windows cleaned regularly either. A modern and professional-looking façade will make the property more appealing to potential buyers or tenants.
…as Does Good Security
Equally, investing in CCTV (see picture), access control systems, and well-lit parking areas – all of which are largely outside the property, and should have no impact on the day-to-day operation of the business – will also help. Commercial premises are likely to attract a higher valuation if they deter any thieves or vandals.
Be Environmentally Aware
There are a number of steps you can take to make the office or factory ‘greener’, which also shouldn’t affect the business inside. Replacing older incandescent lightbulbs with LED ones should help the property’s Energy Performance Certificate rating, it may also be possible to have solar panels installed on the roof without too much disruption, particularly if it’s done outside regular business hours (for instance at weekends).
Premises with a higher EPC rating (either A or B) generally attract more tenants and interest. The greater energy efficiency means there will be lower running costs when it comes to heating and lighting.
Whatever course of action you take, for any of the steps listed above, it’s essential that you talk to the tenant, making them aware well in advance what you are doing, and when. At Maunder Taylor we always encourage an open, regular dialogue between landlords and tenants.
Maunder Taylor – Property Valuation Surveyors in Potters Bar
Whatever reason you need your property valued for – whether it’s for sale and purchase, probate, taxation, litigation, and company audits – as well as just a simple improved rental yield – then Maunder Taylor can help.
For more information about any of our services – which also include acting as property insurance agents in North London, to residential block management in Hertfordshire – follow this link and complete the online form. You can also contact us on 020 8446 0011, unless it’s a residential block management enquiry, in which case you should call 01707 665 666