Tenant Representatives: Their Role in the Real Estate Market

tenant representative

Tenant representation has enabled a lot of buyers to relocate or even close deals relating to real estate properties without the need to be physically present. The representatives take it upon themselves to conduct due diligence through house searching, house inspection, and rent negotiations on behalf of their clients. They will then earn a commission upon the successful completion of a transaction.

Relocation

Usually, many tenants are unwilling to relocate even when their current locations do not suit their needs. During such times of distress, consider hiring one of the companies in Utah that offers tenant representation services. With the case of businesses, it may be considered to be counter-productive to be operating from an unfavorable location. It is likely to increase your production costs, forcing you to supply products to the market at higher prices than your competitors. That is not good for business. Easy access to the target markets is also very essential. In such situations, your tenant representative will undertake the responsibility of looking for a suitable area for relocation. Whenever the representative identifies a suitable relocation area, they may prepare a presentation to be shown to the company’s management team who will discuss and make a final decision on whether to relocate to the identified area. This allows a business to concentrate on its primary objective of value addition to generate revenues.

Lease Bargaining

Following the identification of a suitable relocation area, a lot of time is consumed as tenants and landlords seek to find common ground relating to the lease amount to be paid. Some discussions have taken up to a few months to reach an agreement. This often wastes a considerable amount of time for all of the parties involved. Tenants with access to representation do not have to undergo such long processes. The responsibility is automatically undertaken by their tenant representative who holds discussions with potential landlords until common ground is reached. Usually, tenant representatives enjoy established relationships with a majority of landlords in an area. This means that it becomes easier for the two parties to reach an agreement on the lease, saving a lot of time and money for all the parties involved.

Process Planner

woman is holding the keys to an apartment to clients

An essential duty of a tenant representative is process planning. This refers to managing the entire leasing process from the time the need to relocate arises. For instance, the representative is expected to identify suitable relocation spots and their possible alternatives. They may then arrange a viewing day in the event that a company’s managers are interested in physically inspecting the selected areas. Once the managers give their consent, the tenant representative undertakes a new role of overseeing the completion of the transaction. They may conduct a financial analysis of a company to determine its ability to rent a given property without jeopardizing its normal operations.

Tenant representatives significantly reduce the time and money constraints on a tenant seeking to identify a suitable area for relocation. As a business, you are able to proceed with your normal operations until all relocation plans have been finalized.