Many of Sworders' clients now have income from let commercial property, having gained consent for change of use on redundant farm buildings. However, once tenants are installed and paying rent the work certainly doesn't stop – as the years pass a close eye needs to be kept on asset management opportunities. Rent reviews, lease renewals and accommodating changing tenant requirements are just some of the issues that need to be considered, alongside a maintenance programme of both the buildings and the common areas to ensure rental values are maintained.
For a number of years Sworders has been involved in the ongoing asset management of the let property at Stapleford Airfield, just inside the M25 south of Chipping Ongar. The airfield has a number of long term aviation and commercial tenants and Sworders brief has been to maximise capital value through re-gearing leases, carrying out rent reviews and advising on lease renewals. An important aspect has been to ensure rental evidence is created through re-negotiating leases to provide comparable evidence for settling rent reviews. Rents are now being increased to market levels – in one case doubling the rent payable and in another increasing it by a third. In addition, a number of leases provided long term security to the Tenants, reducing asset management opportunities. In many cases new leases have now been negotiated to provide the Landlord with greater flexibility.
If you would like to learn more about asset managing your let property please call Clare Hutchinson who will be pleased to advise further.