In my Post Real Estate Babel (Part 1) I put forth the theory that commercial property owners may be direct descendants of the peoples of Babylon and perhaps of King Nimrod himself.
Trying to find out what charges are in addition to the rent from most property owners that I've dealt with are, at times, excruciatingly and unnecessarily difficult. And I suspect it's this way everywhere.
It usually goes something like this:
What additional charges is my client expected to pay?
Utilities.
That's it?
Yes.
Is the cleaning included?
No.
OK. Is there anything else?
No.
Oh, by-the-way, what about property management?
Uh, that's extra too. Note: And this is only a partial list.
Then I'll ask for a breakdown of the cost so my client knows exactly what his occupancy cost will be. No problem! I'll email it to you today. They rarely do. After a dozen calls and badgering I'll finally get something in writing. It still may be incomplete. Something invariably will be forgotten. I call it selective amnesia. Strickens the most lucid minds. Poor things.
I don't get it! What's the big secret? Do they think that these unmentioned expenses aren't going to come up later when the prospect gets the lease? And oh boy, the sparks really start to fly. Can't say as I blame them. Who likes surprises? Especially when you've done your planning and budgeting based upon a set of assumptions that you believe to be credible.
But in the property owner's mind the more time he can burn, the less options the prospect will have. Then he'll have em over a barrel. Or, if he tells them too much, the'll scurry away never to be seen again.
What a way to start a business relationship.
I propose that we get rid of all of this jargon and just spell it out. Think of all the extra time we'll have to focus on getting new business. But, I know the mentality. That would be too scary. Or perhaps it's that genetic connection to ancient times.
