DON’T WORRY, NO CV NEEDED APPARENTLY

Most executives in charge of companies realise that their largest operating expenses are the salaries of their carefully selected staff and rental of the property they operate from.

When a new position becomes available within the business, candidates must jump through many hoops to be considered for the post, let alone interviewed. Some of these hoops include providing a comprehensive CV, undergoing personality tests, in-person interviews, background checks, and so on. This is to increase the odds of appointing the best candidate and to find someone who will be a perfect fit for the organisation. During their employment, investment will pour into the successful candidate and the organisation must, therefore, ensure that the salary goes to the candidate who can add the most value.

Then why, do you ask, do business enterprises spend almost no (or very little) time and resources interviewing the property agent guiding them through the stormy waters of securing a new business premises? Very often a junior employee within the company is tasked with searching for available premises online before contacting the respective agents.

Few executives realise that, by using the approach outlined above, this important aspect of the business could be handled by an agent with very little experience. Securing a suitable property has many aspects to consider. These can include legal- and financial considerations, urban development and market conditions to negotiate a fair transaction. The unspoken rule among ethical property practitioners is that a prospective client cannot be shown a building if said client has recently viewed the same property with a competing agent. ‘Duplicate introductions’ like these can open the door to double commission claims and is not worth the risk of negative repercussions.

The main reason this risk exists is the lack of knowledge regarding the difference between residential property and commercial property when it comes to sales or letting. In most cases, residential property is sold by agents with sole mandates. Therefore, a potential buyer will contact a number of residential agents to view various homes in a specific area. In contrast, commercial- and industrial property are primarily marketed through open mandates. Landlords or sellers will typically provide a mandate to a few active agencies operating in a precinct where the properties are located. This is why companies seeking premises will be presented the same commercial- or industrial property options when contacting two or more active agents in a specific precinct.

So, consider these ideas carefully before simply clicking on advertisements for commercial- or industrial property. It will be time well spent to determine the agent’s competency level and client profile before venturing out to view potential properties. Another sensible option is to contact businesses in your network and asking for referrals to competent agents or agencies they have dealt with in the past.