Island Life Magazine Ltd October/November 2015 | Page 125

PROPERTY

14 Arthurs Hill

“Some of the
banks I’ve spoken
to will now lend
up to 50 per cent
on a commercial
investment”

new tenant, rather than entering into
long and potentially costly legal conflicts.
Such difficulties can often be avoided
in the first place, he says, by undertaking
research on a potential new tenant –
whether they’re a small local business or
an international PLC.
Basic due diligence would involve
looking at 3-4 years worth of turnover
figures which would only be possible
with a limited company or PLCs.
Of course, many landlords opt to pay
for a property management service such
as that offered by Gully Howard, which
undertakes rent collection and buildings
issues for a fee of 10 per cent of the
annual rent.
“In many cases, this can free a landlord

to go abroad and relax if they choose to,”
says Gavin.
He adds that there are some
management agencies that will offer a
rent guarantee – but warns investors that
there could be a cost for that.
“There’s no such thing as a free lunch,
so somewhere or other you will be
paying for a rent guaran ѕ