Frequently Asked Questions

 
  • How is your fee calculated?

    We charge a fee based on a percentage of the Gross Receipts of the property (Net Income plus Operating Expenses); the exact percentage is determinable by the complexity of the property and the type & term of the lease. Contact us to request an obligation free appraisal.

  • How is your fee paid for?

    Unlike residential property management which traditionally is paid for out of the Landlords rental income, a commercial property managers fee can usually be recovered from the Tenant via the Operating Expenses Budget (based on a standard Auckland District Law Society (ADLS) lease), meaning the tenant essentially pays for our service.

  • I own a commercial property and it's currently vacant- can you lease it for me?

    We only enter into sales/ leasing activity on properties we currently manage - please contact us to arrange an obligation free appraisal.

  • What is a lease?

    A lease is a formal written contract outlining the terms under which one party agrees to rent property owned by another party. It guarantees the lessee (the tenant) use of an asset and guarantees the lessor (the property owner or landlord) regular payments from the lessee for a specified number of months or years.

  • Why employ a Property Manager?

    Property management is not rocket science. When all is going well, raising a monthly invoice and organising the odd contractor is all that is required. However, are you certain you are maximising the return on your investment? Are you sure the tenant is paying market rental rates? Is there any way to negotiate the upcoming renewal/rent review/ expiry to get the best possible result? Is it possible to reduce the annual occupancy costs for the tenant? All of these questions are completely valid and in these situations, a professional property manager can give you the assurance that you’ve maximised your return and achieved the best possible outcome as a property owner.

    We’ve seen a huge shift in the market since the implementation of the Health and Safety at Work Act 2015 (HSWA). No longer can Property Owners feign ignorance when it comes to the health and safety of anyone interacting with their buildings. A simple ‘head in the sand’ approach simply won’t cut it. Given directors now have a positive due diligence provision under this new legislation, the risk of doing nothing is substantial. Given the personal fines and jail time proposed under the new law, it’s as important as ever to ensure you’re managing your risks as efficiently as possible. Click here for more information.

    Flowing on from the HSWA, compliance hot spots like Asbestos materials, and Methamphetamine “P” contamination, also requires an expert approach- something we at BCRE can provide to our landlords. Click here for more information.

    Lastly, we are our landlords ‘eyes and ears’ on site. Many property owners don’t consider a tenant’s ability to void warranties and insurance in place just by simply installing something without permission, or by failing to carry out a maintenance task. We are compliance experts- meaning we ensure all of your risks are appropriately managed, and the long-term value of your asset is protected.

  • What is OPEX?

    OPEX or operating expenses are all costs required to maintain the assets under management. These include but are not limited to rates, insurance, BWOF costs, air conditioning maintenance, landscaping, rubbish removal, building cleaning & fire services maintenance. The OPEX budget is usually compiled yearly and all tenants will pay a proportionate share with their monthly rent payment (generally based on their share of the overall sqm area of the building). At the end of the year (financial or otherwise), the property manager prepares a wash-up (see below).

  • What is an OPEX Wash-up?

    An OPEX wash-up is prepared at the end of each financial year; it compares the actual costs incurred during that year, and the costs budgeted for and calculates whether a credit note or an invoice is required from the tenant to settle the final balance.

  • What is a BWOF?

    The landlord is legally required under the Building Act to obtain an annual BWOF (Building Warrant of Fitness) certification for their building if there is a compliance schedule in place.

    A BWOF proves the lifesaving systems (called ‘Specified Systems’) in a building have been checked and are in good working order.

    Not all buildings require a BWOF- generally, facilities like lifts, automatic doors, sprinkler systems and extract fans require certification.

    Please visit https://www.building.govt.nz/managing-buildings/managing-your-bwof/ for further information.

  • What is the difference between an Agreement to Lease and a Deed of Lease?

    An agreement to lease sets out the commercial terms under which both parties agree to rent a property at some point in the future. A deed of lease is the finalisation of that agreement to Lease once the property has been completed or available to be leased.

  • What is the difference between a Property Manager and a Broker/ Agent?

    A broker’s job is to either lease or sell commercial property. They are generally appointed on behalf of the Landlord and the landlord pays their fee on successful sale/ lease of the asset.

    A property manager’s job is to wholly manage the asset on behalf of the landlord.

    Click here to read more about our services.

  • How does the leasing process work?

    If a vacancy exists within one of the manager's portfolios, it is the property manager’s job to ensure this is tenanted as quickly as possible; as a licenced office, we are able to lease the property ourselves (without a broker) or with the help of a broker.

    We will arrange viewings with the interested party (and broker if applicable), review the suitability of the prospective tenant, and present this to our landlord for approval.

    We will manage all negotiation between the parties, and ensure the most advantageous lease agreement is agreed and properly executed.

  • What is the difference between a Property Manager and a Body Corporate Manager?

    A property manager’s job is to wholly manage the asset on behalf of the Landlord. See our services

    A body corporate manager’s job is similar in that they manage the asset on behalf of the landlord, but generally within either mixed-use developments (i.e. residential and retail uses combined) or where you have a community of owners or landlords in a strata/ unit title structure.

    Generally, a Body Corporate Manager does not involve themselves with the tenant-specific space- physically or contractually in terms of lease negotiations, renewals, rent reviews etc.