Real Estate Leasing Management
Finding the right tenant to fit specific property needs requires experience and knowledge of the industry. Belwood Properties has over 20 years of experience in leasing commercial, multifamily, and single-family real estate space. Advertising, marketing, and qualifying tenants are all included in our 2.5% leasing fee. We are grounded in our foundation that real estate services should be offered at an affordable rate.
Commercial Real Estate Leasing: Commercial real estate provides one of the largest returns on investment, due to expenses being transferred from owner to tenant through crafty lease agreements. Belwood Properties has licensed real estate agents educated in all lease agreements. When hired to lease commercial space, we do in-depth walk throughs of the property, in order to discover lease types that will produce maximum revenue. Triple net and modified gross are the two leases most commonly used during our negotiations. The maximum term we like to agree upon is 5 years because it minimizes our client’s chances of having a tenant break their lease early. With our experience in managing commercial real estate, we have seen that life can bring surprises that no one can predict. Holding tenants to 10-year leases is hopeful but unrealistic, as we do not know what the future will hold. We approach lease negotiations with both parties in mind, showing prospective tenants that we are not greedy. Interested tenants appreciate honesty and are more inclined to sign a shorter-term lease with an option. Our commercial real estate leasing success is lead by integrity and has proven to reduce turn over rate in a competitive market.
Residential Real Estate Leasing: Customer service is the heart of all successful residential leases. Prospective tenants are going to call this unit their home, so making them feel comfortable is our highest priority. When someone comes for a property tour, the listing agent serves as the first impression. Belwood Properties understands the importance of first impressions and has adjusted their residential leasing method appropriately. With technology being readily available to anyone, we have to expect that the prospective tenants already know everything about the property. They know how much units next door are renting for, what previous tenants had to say about management, and whether the price is fair. The internet can serve as an unfriendly reminder that we are all available to the same information. That is why we train our staff to excel at customer service, securing new tenants over other leasing agents. We perform all these tasks, as well as qualifying tenants through our application process. Background checks, eviction history, credit checks, reference criteria, and financial requirements are the base for qualify tenants.
Commercial Lease Types:
Triple Net – Rent, utilities, monthly maintenance, insurance, property taxes, and management fee. The base rent is usually lower due to the additional fees that come with this lease type. The percentage of “triple net” costs are dependent on the percentage of the building they occupy. The percentage is determined based on the square footage that the tenant occupies.
Modified Gross – Typical for office space that is above retail space or stand alone. It is typical that these tenants, outside of base rent, pay a portion of utility costs. For example, base rent could be $2,000 plus a portion of the electric bill every month. The portion would be determined as a percentage based off of the square footage they occupy.
Residential Lease Types:
Month to Month – This lease does not hold terms outside of one month at a time. Notice would have to be given by either the tenant or owner to vacate the following month. This type of lease is typical after a one-year lease has expired.
Term Lease – This is the most common type of lease for residential properties and can vary from 1-2 years. One-year leases are preferred, as most tenants do not want to be locked into a 2-year lease. We will sometimes offer a 2-year lease if the prospective tenant is worried about a rent increase. This lease would come with an agreement on the base rent being the same for both years. Adding language in a term lease, that upon a leases ending date, the tenancy will be transferred over to month/month, will allow you to increase the rent year by year.