Do you collect a bond from the tenant? Yes, and it typically has a value equal to three months rent.
As an industrial property asset management what happens when a tenant does not pay rent for 14 days or more? By this stage a seven day arrears letter would have been issued to the tenant, therefore the tenant will be contacted by phone and issued with a second rental arrears notice.
When a tenant moves into a property are they provided an inspection report? Yes, prior to the tenant moving in, an entry condition report is completed along with a comprehensive photo log of the premises. Both the written report and a CD photo log are provided to the tenant.
How often do you inspect the property for the owner? The property is inspected annually on behalf of the owner.
Do you increase the rent? Yes, rent is reviewed annually in accordance with the lease terms.
How long are the leases? Leases are typically two to five years long with various options. These terms are negotiable by the owner and the tenant.
Can you pay all the bills for the oweners? Yes, we can have all bills redirected to our office and paid on behalf of the owner from their rental income.
How to sell your industrial property?
What would be the key criteria you would identify as most important when choosing an agent to sell an industrial property? Specialisation, etc.
How long does it typically take? In the current market about three to six months.
Is it important to market your property? Yes because marketing increases the number of people we can negotiate with which means we get a higher price.
Do you market on the internet? Yes, it is imperative your property is on the internet but it is even more important the property is one on the first or second page within the suburb the property is situated.
How do you tell what a property is going to sell for? Bawdens is a specialised industrial agency and so we have information about sales that no one else has. This ensures that the right advice is provided.
How to lease your industrial property?
How do you submit an offer to the owner from a prospective tenant? We at Bawdens have a document that outlines essential terms on offer from the tenant. This is then presented to the owner for discussion and counter offer as might be required.
Are offers always in writing? Yes, it is best to have it in writing as there can be no mistakes as to the tenant’s intentions.
Is a deposit required? Yes, it is. Typically one month’s gross rental including GST.
When would the tenant pay this? Once the terms are agreed.
Who prepares the lease agreement? The lessor’s solicitor.
How long does it take normally to get the lease prepared and executed by the tenant? On average, one to three weeks, it can take longer if there are unusual circumstances.
How to invest industrial property?
Do you sell properties with tenants in place? Yes.
How long are the lease terms? Compared to residential, much longer, often two to five years.
Are the returns better than from houses? Yes, at times double what you would get from a residential investment.
What would be four key things people should use to decide if an investement they are considering is good or not? First, look at the lease term. Second, the strength and quality of the tenant. Thirdly, is there a bond? Lastly, the income and return on your investment.
FAQs about leasing industrial property
Do tenants need to pay a bond? Yes, and typically in the amount of three months gross rental including GST.
What is the normal lenght of a lease? Two to five years.
Do tenants pay a deposit? Yes, typically in the amount of one month’s gross rental including GST.
How long after paying a deposit does a tenant get the lease? Usually within ten (10) working days.
Who pays for the legal costs? It is usual practice for the lessee to pay for both parties’ costs.
FAQs about selling industrial property
Does an owner require a contract for sale to be prepared before listing a property? No
How long does it take to sell? This can depend on the age, location, and any unique features a property might have, but typically two to six months.
After a purchaser pays the 10% deposit when does the sale settle? Usually 28-42 days later.
Can a purchaser buy a property in a company name? Yes.
Is gst payable on a sale? Yes, if it is vacant. No, if it is tenanted.
FAQs about managing industrial property
How often do i receive my rent? Normally, monthly.
Can i have all my bills paid by the agent? Yes.
Do you complete regular inspections? Yes typically in detail annually.
Are annual fire service equipment inspections completed? Yes.
Does a tenant have to remove any fitout they may have built at the end of the lease? Yes, but if in doubt, always refer to the lease.