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Property costs are often the second highest cost to any business outside of wages. The consequence of making the wrong decisions therefore can have a serious effect on the overall viability and success of a business. Alternatively, making clear and informed decisions can create positive impacts and create further opportunities which usually result in monetary benefits.

Information is said to be power, but unfortunately information is only as good as the source from which the information came. This is why a Tenant Advocate must be independent of Landlords and Developers to ensure that the client receives all available information and that all information is objective.

The role of a tenant advocate is to provide independent property advice which enables a tenant to make informed and unbiased decisions when reviewing and negotiating their accommodation requirements. Through a transparent process, the tenant advocate will document a detailed understanding of the business’s key objectives which will enable them to evaluate their functional requirements (reasons for expansion or contraction) as well as recognise opportunities and be flexible to changing business.

Too often businesses confuse tenant advocacy services with the service of a selling or leasing agent or worse, businesses assume leasing agents are also tenant advocates. The problem with this is that the leasing agent is paid by the Landlord/Owner which usually means:

1. They are legally required to achieve the best deal for the Landlord/Owner (not the Tenant); and 2. The higher the cost of your Lease, the more they get paid; and 3. They are not in a position to advise on the ‘bigger picture’.

Tenant Advocates ensure appropriate accountability as the basis for strategic decision making; undertake feasibility analysis of options accompanied with cash flows identifying the threats and weaknesses of options. This process will ensure the client’s accountability is always protected and ensures that informed decisions can be made. As tenant advocates are independent from property management firms and fees are payable by the tenant/client therefore eliminating conflict of interest.

Typically, the key areas where tenants tend to come unstuck are the finer details of the proposed lease commitment and the liability of such commitments. A tenant advocate will negotiate on behalf of the tenant whilst ensuring the client is always informed and is in control of the process.

Tenant advocates provide clarity and add value by providing a clear and accountable process to ensure decision making in financially sound and meets the business capacity of any sized business.

When selecting your tenant advocate, choose a specialist firm with extensive local experience and market knowledge, ask how much work the advocate’s company is landlord based and ensure the fee structure does not conflict with your objectives. If no fee is charged, ask yourself “Who is the agent really working for?”

Thanks to Justin Boelen, Director
VSA Property
21 Southport Street
WEST LEEDERVILLE WA 6007
Ph: (08) 9389 7205
Mobile: 0417 177 627
Fax: (08) 9389 7204