Educational

Let’s face it — being a commercial landlord isn’t glamorous. There’s no red carpet, no champagne, and definitely no award for “Best EPC Rating.” But if you want to avoid legal headaches, vacant units, and tenants who ghost you faster than a bad Tinder date, you need a checklist. A good one. One that’s actually readable. So here it is — the ultimate guide to managing your commercial property like a pro (without falling asleep halfway through). 1. Legal Documents: The Boring Stuff That Saves You Later Before you even think about letting your property, make sure your paperwork is tighter than a triple-locked fire exit. 2. Repairs & Maintenance: Don’t Be That Landlord Tenants want a space that works — not one that leaks, creaks, or smells like damp optimism. 3. Compliance: Because Fines Are Not Fun You’re not just a landlord — you’re a legally accountable adult. Scary, right? 4. Marketing & Tenant Vetting: Attract the Right People A good tenant is worth their weight in gold. A bad one? Worth their weight in unpaid rent and legal fees. 5. Rent Collection & Financials: Keep It Clean Money makes the property world go round — but only if it’s collected properly. 6. Communication & Record-Keeping: Your Secret Weapon Tenants appreciate clarity. And if things go south, your records will be your best friend. Final Thoughts: Be the Landlord You’d Want to Rent From Managing commercial property isn’t rocket science — but it does require diligence, empathy, and a dash of common sense. Whether you’re working with charities, small businesses, or social enterprises, your role is more than just collecting rent. You’re providing space for people to grow, serve, and succeed.

Commercial property is often pitched as the grown-up cousin of residential investment — more stable, more lucrative, and less emotionally messy. But is it really the golden goose of your portfolio, or just a shiny trap with a leaky roof and a long lease? Let’s unpack the hype, the headaches, and the hard truths. The Case for Commercial: Why It Could Be Brilliant First, the good news. Commercial property can offer higher rental yields, longer lease terms, and less hands-on management than residential lets. Tenants are usually businesses, not individuals — which means fewer emotional dramas and more predictable contracts. A well-placed office, warehouse, or retail unit can generate 6–12% annual returns, especially if it’s in a growth area or tied to a long-term lease. And unlike residential tenants who might move every year, commercial tenants often sign up for 5–10 years, giving you stability and fewer void periods. There’s also the tax angle. Commercial landlords can claim capital allowances, deduct mortgage interest, and depreciate the asset — all of which can soften the tax blow and boost net returns. The Pitfalls: Where the Fancy Turns Frightening Now for the reality check. Commercial property isn’t a fruit machine that pays out every time you press the button. It’s more like a chess game — strategic, slow-moving, and occasionally brutal. Vacancy risk is real. If your tenant folds or moves out, it can take months — even years — to find a replacement. And during that time, you’re still paying business rates, insurance, and utilities. Unlike residential property, where demand is usually steady, commercial demand can swing wildly with the economy. Then there’s market volatility. Retail units on high streets? Risky. Office space post-pandemic? Still uncertain. Industrial units and logistics hubs? Hot right now — but trends shift. If you buy into the wrong sector at the wrong time, your “investment” becomes a liability. And let’s not forget upfront costs. Commercial property often requires a bigger deposit, higher legal fees, and more complex due diligence. You’ll need surveys, asbestos checks, EPCs, and possibly planning consultants — all before you even get the keys. ROI: Real or Imagined? Return on investment (ROI) in commercial property depends on three things: location, tenant quality, and lease terms. A prime unit with a blue-chip tenant on a 10-year lease? Gold. A tired shopfront in a declining town with a startup tenant? Risky. You’ll need to calculate net yield (after costs), factor in capital growth, and consider exit strategy. Can you sell easily? Will the market support your asking price? Is the asset future-proof — or will it be obsolete in five years? So, Is It Worth It? Commercial property can be a powerhouse — or a money pit with a glossy brochure. The difference lies in due diligence, realistic expectations, and a willingness to play the long game. If you’re sourcing properties for charities or small businesses, like Fenton and Scott, the investment isn’t just financial — it’s social. You’re helping organisations access space they couldn’t otherwise afford. That’s impact with integrity. But if you’re investing for profit, treat it like a business. Run the numbers. Know the risks. And never buy a building just because it looks “cheap” — it might be priced that way for a reason.

If you’ve ever heard someone say, “It’s a Full Repairing and Insuring lease,” and nodded politely while secretly wondering if that meant you’d be fixing the roof with your own ladder — you’re not alone. FRI leases are a staple of UK commercial property, but they’re also one of the most misunderstood beasts in the legal jungle. Let’s demystify them — with a little humour and a lot of practical insight. What Is an FRI Lease, Really? An FRI lease (Full Repairing and Insuring) is a type of commercial lease where the tenant takes on full responsibilityfor maintaining, repairing, and insuring the property. That includes the roof, the plumbing, the structure, and yes — even the rats, if they’re chewing through the electrics. Landlords love it. Tenants… well, they need to read the fine print. Under an FRI lease, the tenant agrees to keep the property in “good and tenantable condition” — which sounds reasonable until you realise that might include fixing pre-existing defects, structural issues, and anything that breaks during the lease, regardless of fault. Why Landlords Prefer FRI Leases It’s simple: less hassle, more profit. With an FRI lease, landlords don’t have to worry about maintenance, insurance, or surprise repair bills. The tenant handles it all, which means the landlord can sit back and collect rent while someone else pays to fix the boiler. It’s a dream setup — unless you’re the one paying for the boiler. What Tenants Actually Take On Here’s where things get spicy. Under an FRI lease, tenants are typically responsible for: That means if the roof leaks, the tenant fixes it. If the wiring is dodgy, the tenant replaces it. If the rats move in, the tenant calls pest control. And if the building collapses due to a hidden defect? Yep — still the tenant’s problem. The Schedule of Condition: Your Legal Lifeboat Smart tenants negotiate a Schedule of Condition — a detailed report (often with photos) documenting the property’s state at the start of the lease. This can limit your liability by proving what was already broken when you moved in. Without it, you could be on the hook for repairs to things you never touched — like that mysterious damp patch behind the fuse box. Real-World Example: The Roller Shutter Saga A tenant signs an FRI lease on a shop with a broken roller shutter. They assume they’re only responsible for keeping it in the same condition — broken. But the lease says “keep in repair,” which legally means “put into repair.” At lease end, the landlord demands thousands to fix the shutter. The tenant pays — because they didn’t negotiate a Schedule of Condition. Lesson learned: “keep in repair” means “fix it,” not “leave it as it is.” Can You Negotiate an FRI Lease? Absolutely. Tenants can: But you need to negotiate these terms before signing — not after the roof caves in. Final Thoughts: Read It, Don’t Regret It FRI leases aren’t evil — they’re just misunderstood. For landlords, they offer peace of mind. For tenants, they offer control and long-term stability — but only if the lease is fair and the risks are clear. So whether you’re sourcing properties for charities, small businesses, or your own consultancy clients, make sure they understand what they’re signing. Because no one wants to discover they’re legally responsible for a colony of roof rats and a collapsing chimney.

Buying commercial property isn’t just a transaction — it’s a strategic move that can shape your business or investment future. But let’s be honest: it’s also a minefield of jargon, hidden costs, and legal curveballs. Whether you’re sourcing space for a charity, a small business, or a community hub, this guide will walk you through the essentials with clarity, wit, and a healthy dose of realism.Location, Location… and LogicYes, location still reigns supreme — but not just for footfall and postcode bragging rights. You need to think about infrastructure, transport links, zoning, and future development plans. Is the area about to get a shiny new tram line or a retail park? That could boost value and visibility. On the flip side, if the neighbourhood’s in decline or riddled with planning restrictions, your dream deal could turn into a logistical nightmare.Don’t just Google the postcode — walk it, talk to locals, and check council planning portals. If you’re helping charities or small businesses, proximity to beneficiaries, volunteers, and public transport matters just as much as square footage.Use Class & Planning PermissionsEvery commercial property in the UK falls under a “use class” — and buying the wrong one for your intended purpose is like buying a pub when you need a nursery. You’ll need to check whether the building’s current classification matches your needs, and if not, whether you can apply for a change of use.Some changes are straightforward under permitted development rights, but others require full planning permission — which can be denied. Always check with the local authority before committing, and if in doubt, get a planning consultant involved.Lease Types & Legal LandminesIf you’re buying a freehold, you own the building outright. If it’s leasehold, you’re buying the right to occupy it for a set period — and that lease could come with hidden obligations. Look out for service charges, ground rent, and restrictive covenants that limit what you can do with the space.And if you’re buying with tenants in place, review the lease terms carefully. Are they on a Full Repairing and Insuring (FRI) lease? That means they’re responsible for repairs — including the roof and possibly the rats. It’s great for landlords, but not so great if you’re the one inheriting a dilapidated building with a tenant who’s about to leave.Surveys That Actually MatterDon’t skip the survey. A basic valuation won’t tell you if the roof’s about to collapse or if the electrics are a fire hazard. You’ll want a full building survey — especially for older properties — and possibly an asbestos report, drainage check, and energy performance certificate (EPC).If you’re helping charities or small businesses access property, these surveys are essential for transparency and safeguarding. No one wants to move into a “free” building only to discover it needs £50k in urgent repairs.Hidden Costs & Sneaky SurprisesStamp duty, VAT, legal fees, insurance, business rates, and refurbishment costs — they all add up. And if you’re buying through a company, there may be additional tax implications. Always budget for the unexpected, and if the deal looks too good to be true, it probably is.Also, check whether the property is listed or in a conservation area — that can restrict what you can change and increase your costs.Funding & FinanceUnless you’ve got a suitcase full of cash, you’ll need to explore commercial mortgages, bridging loans, or social investment options. Lenders will want to see a solid business plan, projected income, and evidence that you’ve done your homework.For charities, there may be grants or low-interest loans available — but they often come with strings attached. Make sure your funding aligns with your long-term goals and doesn’t compromise your independence.Final Thoughts: Sanity-Saving StrategyBuying commercial property doesn’t have to be a stress spiral. With the right prep, the right team, and a clear sense of purpose, it can be a powerful tool for growth, impact, and long-term stability.So breathe, plan, and don’t be afraid to ask questions that sound “basic.” The smartest buyers are the ones who admit what they don’t know — and then find the right people to fill in the gaps.