Should commercial SMEs be encouraged to use surveyors?
The answer is yes. Smaller commercial tenants can make big savings on rent by hiring surveyors, but are deterred by a lack of understanding and fear of costs – putting them at a disadvantage in lease negotiations.
Surveyors and solicitors offer distinct advice.
Surveyors who advise on leases need to better differentiate their services from those of solicitors in the eyes of smaller tenants, as confusion between the roles can make the case for instructing both kinds of professional more difficult.
While solicitors review leases and agree to terms, the benefit of also having a surveyor is that they can deal with the commercial aspects of the transaction, including reviewing the market, agreeing rents and negotiating on behalf of the client.
Surveyors understand the types of lease term and incentive that can be achieved, such as rent-free periods, landlord contributions to fit-outs and stepped rent agreements, i.e. incremental increases in rent.
While solicitors carry out the bulk of lease documentation work, it is often more efficient to have a surveyor provide comments and guide the process through to completion.
Therefore, it is erroneous to think that one professional should be instructed rather than both. Surveyors are crucial to having a market-sensitive lease, while solicitors ensure watertight legal documentation.
Although smaller tenants may feel surveyors are getting paid similar fees for less work than solicitors, this is often not the case, and both professionals are essential for the best results.
(This extract is courtesy of the RICS website)