Real Estate Investor October 2020 October/November 2020 - Page 34
GET BACK TO ORGANIC
At Crossways Farm Village , you are not getting away from it all . You are getting back to it all .
Back to sustainable living . To the way your great grandparents lived . From farm to hand . Organic . Raw . Pure . Where the soil is cared for and the labour honest . Get back to open spaces . To a community living in balance with nature , where nothing is wasted and resources are renewable . Get your hands dirty . Grow with us .
Get back to it all at Crossways Farm Village - South Africa ’ s first contemporary new rural town .
For more information about the future of sustainability and organic living , please phone Mariaan Coetzee on 083 788 0926 or Marissa Möller on 084 508 3282 .
www . crossways . co . za
Take a leap of faith
5 things to consider when leasing
ince the inception of the pandemic propelled lockdown, people lost their
jobs, companies lost their businesses and the country lost its economic
stability. Considering the effects of the lockdown, it is only fitting that we
take advantage of all possible money-making opportunities that can help us
improve our stream of income. This can be done in almost all sectors I.e. the
hospitality sector, fashion or retail, art and even in the real estate sector.
However, the need to maximize your earnings or income should not alienate
you from going big and exploring where necessary. Remember, you spend
money in order to get money. If it means moving to a bigger office as a means to
expand your business be sure to take the keys and move in, as long as it rewards,
it is worth it. But be careful while at it.
Leasing office space for your business can be even more daunting now as the
country transitions out of lockdown. With remote working now part and parcel
of our daily experience, businesses, both large and small are scrutinizing lease
agreements and asking the ever-important question “Are we getting value for
money?” Head of Asset Management at Attacq Debbie Theron sheds light on 5
points to ponder before signing on the dotted line.
Location, location, location
Understanding the strategic value of the neighbourhood and community
in which one leases is a critical factor in ensuring that you get value for money.
For instance, businesses reliant on client walk-ins require business locations
that offer a broad range of lifestyle and entertainment choices. In addition,
convenience and secure parking should be non-negotiable. Management should
always choose a location which aligns with its own values in terms of providing
employees, visitors and staff with the best choices in terms of amenities such as
shops, schools, gyms and excellent transport hubs thereby promoting work life
balance and convenience.
Who pays what in the agreement?
Tenants should always ask about common area
maintenance. What is common area? These are typically
spaces shared by all tenants in a building or precinct and
normally includes services such as security, landscaping,
cleaning amongst others. As a tenant, one should clearly
understand what the common area services are and also
what the tenant’s share of these costs would be once the
lease agreement is signed. These costs are typically called
“operating costs” and should be clearly defined to avoid
confusion later. Lastly, most agreements hold tenants
responsible for the internal maintenance of their exclusively
Common areas are spaces shared by all tenants in a
building including services such as security, landscaping,
Cost of occupancy
Cost of occupancy refers to the total monthly cost
related to your tenancy. It would be wise to obtain an
estimate from your prospective landlord upfront so that you
can budget accordingly and not be surprised at a later stage.
These costs include rental, parking charges, operating costs,
all utility charges, levies and your proportionate share of
rates and taxes. These costs are usually quoted VAT exclusive.
It is also important to establish who your electricity supplier
is as the rates charged can differ.
A vested landlord
It is important to have a landlord that is as much
committed to the partnership as you are. Have a
careful look at the common areas in the building
or precinct you are about to move into, establish
the landscape and rules of engagement with the
landlord upfront and remember that the lease
you sign with your landlord is the beginning of
a long-term relationship.
When choosing the space for your
business, there are a number of factors
to consider, but what is paramount
is how your business strategy aligns
with the location and the landlord.
Choose a location that aligns to your
business, employees and your other
stakeholders’ needs. Remember you
want to do as much as you can to
keep a good working environment
for your employees, while trying
to be survey with money. It is all
Decking out your new offices
Depending on the salient terms of your lease (rental
and lease period are considered) you may be offered a
tenant installation allowance. This is an allowance provided
by the landlord towards the fitout of your new space and
is used towards partitioning, carpets, painting and the like.
Ensure that you understand exactly what is on offer and
what it covers, as the various landlords do have different
criteria. The important principle is that this allowance must
be used to upgrade the premises you are about to move
into and is not an allowance towards furniture and tenant
specific installations such as a bespoke server room.
Understand how long your fit out will take and plan
accordingly. Turnaround time will depend on the complexity
of your design and the size of your premises.
OCTOBER/NOVEMBER 2020 SA Real Estate Investor Magazine
SA Real Estate Investor Magazine OCTOBER/NOVEMBER 2020