Are you confident that the rent being paid is consistent with the market and what are the true costs? If you are uncertain, it may be in your best interest to have us review your rental rates.
What kind of leases?
Typically, rent reviews have historically been primarily for commercial & industrial properties. However, since property value is income driven, owners may also opt to have the rents of their multi-family properties reviewed as well. It all becomes part of the long-term asset strategy.
What's Included: Net or Gross?
Gross Lease The landlord receives the contract rent and is obligated to pay some, most or all, of the operating expenses and real estate taxes
Net Lease The tenant pays the contract rent and all of the propertys operating expenses, such as utilities, property taxes, insurance, and general property maintenance proportionate to the leased area. In some cases management may also be charged back to the tenant.
When to review a lease?
- When you are considering to re-lease a unit, as any rents below market could significantly impact the overall property value, and any rents above market may contribute to future vacancies
- Maintain competitive advantage over other properties offering similar space
- Provide assistance during rent arbitration for a renewal
- Assistance in estimating damages when a tenant leaves suddenly
- When you are seeking a new space it provides an advanced look at the market for budgeting
- On a lease renewal it helps to have fresh look at the market to determine where rental trends have gone - up, down, no change, and this information provides assistance for your negotiations
- We can act as part of your team to assist in any rent arbitration
- Research and report what typical lease inclusions are, i.e. property taxes, building insurance, landscaping, utilities, rent-free periods, leasehold improvements, etc.
Poorly chosen rental rates can potentially affect either a tenant or an owner for a very long time. Would a second set of professional eyes be helpful to you? We also advise that legal council should always be sought for reviewing any legal contracts or documents.