Rents falling gradually due to rise in supply

Whether moving from an office or residence, one of the most common reasons for making this decision, is the rent. Of course there are other factors affecting a final decision such as location, parking, expansion, and so on. However, rent is always a key issue.

Hassle factors are inevitable when it comes to moving, not to mention associated expenses. If the municipality tax has been paid, it cannot be transferred to the new location and must be written off.

With an office, there may be new fit-out costs and in the case of a villa, the garden and other improvements are a further expense. In addition, the change of telephone numbers, Dewa/Sewa deposits, service fees, new address announcements, etc, all contribute to deterring a person from making the commitment to move.

However, if one's neighbour is paying less for the same property, or in general enjoying a better contract, he is certainly going to review his own situation.

Discovering the possibility of a substantial saving can quickly ease many of the hassles that accompany these moves.

If a property comes available that is more or less equivalent to the existing one, and the rent is lower with an option to pay in several cheques, many would not hesitate with the decision to change premises.

For many years the market was very strong and opportunities to find a superior property were limited. There has been a general softening of the rents during the past few years due to an increase in supply.

As this supply continues to escalate, those properties in poor locations and in less than mint condition will obviously be affected by these changes. In many of these instances, the landlord has had to negotiate his rent and these properties will continue to be at risk.

Paying greater attention to what and where he builds can also contribute to the success of his property in the future.

In general, there has been an opportunity for negotiation at least to some degree on all property during the past year. This may be in basic rent, payment terms, or in the offering of a rent-free period.

It is natural to want the best possible value for money and as long as there are better deals available, people will be looking.

A visionary landlord, who maintains his property in a professional manner and stays within the market rates, stands a better opportunity of obtaining a higher return over the long term. The market has evolved, and attitudes toward real estate are changing.

Tenants expect quality and luxury along with good management. If they find it elsewhere for the same rent or less, their response is not difficult to anticipate. Paying attention to these issues will contribute to higher occupancy rates and reduce the number of needless lateral moves.