Cash Flow

The very wording of cash flow does imply that it always comes in, only to flow out again. Sometimes it seems that the ebb is greater than the inflow.

Three years ago, commercial agents usually got paid on completion of either the sale or lease. Nowadays, banks have a claim on the whole sale proceeds and with leases, there are such large rent free periods that there are no funds to pay the poor agent.

Most of the services that we provide, such as Rating Appeals, Valuations or even Dilapidation work provide a steady income flow down the line for the client. However, there is little up front cash generated and so no funds to pay.

These adverse conditions are making it very hard and we, as property agents, seem to spend an increasing amount of time chasing and collecting money.

Now I accept we are not the most popular sector of the economy, but our input is crucial and I am looking forward to the economy picking up so we can concentrate more on generating fees than having to remind clients to pay them.

I think that there are definite signs of matters picking up. We are experiencing a busier January than we have in the last two years and there are signs that people are deciding to 'have a go'. If the rents are fair and the leases reflective of market conditions, we seem to be able to get the deals together.

Sales, on the other hand, are still dire. If you want to give it away, it will sell. Otherwise don't bother...

...unless, of course, you have something equally cheap to buy. Then you are no worse off.

Very Busy New Year: Follow the Rainbow

The year has started with all guns blazing, mostly to do with solicitors trying to earn some cash after three weeks off!

As agents, we are often to be found chasing up deals and providing information to the higher power that we have already let them have; we operate in that quasi world where we are often expected to work for free. In other words, our job is to find a tenant/ buyer. However we often are a port of call for epcs, various reports and other random information, such as plans and enquiries. None of this is chargeable but we do it because we want to get paid for finding the tenant/ buyer and it smoothes the process and thus speeds it up.

I cannot imagine solicitors not racking up their unit calculators for doing the same.

Whilst we are busy, it does seem to be of the holding hand variety and trying to get deals finalised and through legals. In essence we are chasing the pot of gold at the end of the rainbow, often very elusive.

Happy New Year

Following a relatively successful 2011, we are running low on properties to let. If want to find a tenant for your property, then let us know. We would love to help. Shops, offices, industrial units, lock ups or anything that can be rented, please see how we can help.

The average vacancy rates for shops that we were solely instructed on, for 2011, was less than three months.

We try and be proactive and do not spend fortunes on needless advertising.

hugh@chartex.co.uk