Hi,
I am more used to residential property, but my elderly mother has a commercial property from my deceased dad's estate that she has been leasing to same tenant for quite some time.
It has again come time to release but the tenant has requested the flooring be fixed.
Up until now it has been self managed, ie I have looked after the rent receipts, expenses and organised anything that needed fixing. However I have engaged Knight Frank who have been extremely helpful to release and manage the property going forward.
As part of this, they have obtained a quote (another one awaited) for the flooring.
The quote has come back as $44k for timber and $55k for concrete.
The property is a relatively small retail type property.
From my experience with residential property, this quotation seems extreme but perhaps I am missing something with regards to commercial property, ie rates are generally more for some reason or other. And of course there could be more serious underlying issues as the reason for the quote amount.
Unfortunately that amount is way to much for my mother, particularly given the additional rent free period that would exist during the works, and the fact that to date the property has been leased at rental rate well below market rate, so unless the other quote comes in substantially less, I may have to look at selling it.
However as it is up for release, the property is effectively untenanted if sold.
Given the condition of the flooring and the prospect of selling untenanted, wondering if it is better to perhaps get a loan (me personally), fix the floor, retenant and sell, or to just sell as is untenanted?
Normally with residential, have no issue selling untenanted, but I suspect with commercial it's a completely different ballgame.
Cdchi1
I am more used to residential property, but my elderly mother has a commercial property from my deceased dad's estate that she has been leasing to same tenant for quite some time.
It has again come time to release but the tenant has requested the flooring be fixed.
Up until now it has been self managed, ie I have looked after the rent receipts, expenses and organised anything that needed fixing. However I have engaged Knight Frank who have been extremely helpful to release and manage the property going forward.
As part of this, they have obtained a quote (another one awaited) for the flooring.
The quote has come back as $44k for timber and $55k for concrete.
The property is a relatively small retail type property.
From my experience with residential property, this quotation seems extreme but perhaps I am missing something with regards to commercial property, ie rates are generally more for some reason or other. And of course there could be more serious underlying issues as the reason for the quote amount.
Unfortunately that amount is way to much for my mother, particularly given the additional rent free period that would exist during the works, and the fact that to date the property has been leased at rental rate well below market rate, so unless the other quote comes in substantially less, I may have to look at selling it.
However as it is up for release, the property is effectively untenanted if sold.
Given the condition of the flooring and the prospect of selling untenanted, wondering if it is better to perhaps get a loan (me personally), fix the floor, retenant and sell, or to just sell as is untenanted?
Normally with residential, have no issue selling untenanted, but I suspect with commercial it's a completely different ballgame.
Cdchi1