How to market business premises for letting

Marketing a Commercial Property for Letting


Marketing a commercial property for letting

When a landlord has a vacant property, or one that is about to become vacant, he will need to set about finding a new tenant. Depending on the nature and size of the property, the landlord may be able to find a tenant by spreading the word locally. In most situations, however, the landlord will appoint a letting agent to market the property and attract a suitable tenant.

The landlord should choose a letting agent who is familiar with the local market and who has experience of marketing similar properties. The agent will advise the landlord on marketing strategy, the level of rent that should be sought and any particular terms that should be incorporated in the lease.

The marketing process is likely to involve internet advertising and advertisements in commercial property publications and local newspapers as well as the placing of a “TO LET” sign at the property.

Energy performance certificates

Subject to certain exceptions, a property must not be marketed for sale or letting unless an energy performance certificate (EPC) has been obtained. The EPC must be prepared by an accredited assessor. It must be provided free of charge to prospective tenants. The idea of an EPC is to inform the tenant about the energy efficiency of the building. It does so by giving the property a rating from A (the best) to G (the worst).

An EPC remains valid for 10 years so the same certificate could be used for several consecutive lettings. However, if the landlord has taken steps to improve the energy efficiency of the building, e.g. by adding insulation or upgrading the boiler, he may wish to obtain a new EPC with a better rating.

A multi-let building may have just one EPC or there may be an individual EPC for each lettable unit. Which approach is taken will depend on the layout of the building and the position of its heating and ventilation systems.

The Energy Act 2011 contains provisions making it unlawful to let a property with an energy efficiency rating of F or G. These provisions are not yet in force but are due to come into force on or before 1 April 2018. Landlords of properties that will be affected by these provisions should be taking steps now to improve the energy efficiency of their properties.
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