{"id":5556,"date":"2024-04-15T14:39:34","date_gmt":"2024-04-15T12:39:34","guid":{"rendered":"https:\/\/ownerside.be\/acquisition-and-rental-of-an-investment-property\/"},"modified":"2024-10-30T09:25:38","modified_gmt":"2024-10-30T08:25:38","slug":"acquisition-and-letting-of-an-investment-property","status":"publish","type":"post","link":"https:\/\/ownerside.be\/en\/acquisition-and-letting-of-an-investment-property\/","title":{"rendered":"Acquisition and rental of an investment property."},"content":{"rendered":"\n<p>OwnerSide was recently asked by one of its clients to put up for rent a building which he had<br\/>purchased a few months earlier through our partner (sister company ?) BuyerSide.<br\/><br\/>Despite the fact that the building was brand new, there were major challenges to be overcome in<br\/>order to avoid it being left unoccupied on the rental market and to ensure the long-term profitability<br\/>of the investment. Here#39;s a look back at a challenge full of twists and turns.A building with high profitability potential, but a high unoccupancy riskEven though the building was completely stripped and rebuilt from scratch, the lower part of the<br\/>of the building, i.e. the ground floor which is intended to be used as commercial premises, was<br\/>delivered in its raw carcass work state at the time of the sale by the builder.<br\/><br\/>Well aware that trying to let the ground floor in that shell condition would pose considerable<br\/>difficulties, the BuyerSide team nevertheless decided to advise their client to purchase this building.\nEn effet, l\u2019am\u00e9nagement d\u2019un tel local, sans chape de b\u00e9ton au sol, sans arriv\u00e9e<br\/>d\u2019eau, de gaz, ni d\u2019\u00e9lectricit\u00e9, avec les murs enti\u00e8rement \u00e0 nue o\u00f9 tout est litt\u00e9ralement \u00e0<br\/>faire, repr\u00e9sente un investissement cons\u00e9quent pour le locataire entrant, ce qui limite<br\/>inexorablement le nombre de candidats potentiels \u00e0 la location, et augmente dans le m\u00eame<br\/>temps le risque de vide locatif.\nIl \u00e9tait donc indispensable que BuyerSide mesure le risque et<br\/>la rentabilit\u00e9 le plus pr\u00e9cis\u00e9ment possible de cet investissement avant de d\u00e9cider si oui ou<br\/>non l\u2019acquisition de cet immeuble en valait la peine pour notre client.In fact, the second fixing of such premises, with no concrete screed on the floor, no water, gas or<br\/>electricity supply, with the walls completely bare and literally everything remaining to be done,<br\/>represents a substantial investment for the incoming tenant, which inevitably greatly limits the<br\/>number of potential tenants, whilst simultaneously increasing the vacancy risk. This explains why it<br\/>was crucial for BuyerSide to quantify the risk and profitability of this investment as accurately as<br\/>possible before deciding whether or not to the acquisition of this building was worth the effort for<br\/>our client.C\u2019est ainsi qu\u2019en <strong>capitalisant le loyer commercial \u00e0 5% et le r\u00e9sidentiel \u00e0 4%<\/strong>, l\u2019analyse<br\/>approfondie du bien r\u00e9alis\u00e9e par Maximilien, en charge de ce dossier, lui a permis d\u2019aboutir<br\/>\u00e0 <strong>une rentabilit\u00e9 de 4,33%<\/strong>, m\u00eame en estimant le loyer du rez commercial dans la fourchette<br\/>basse des prix du march\u00e9. By<strong> capitalising the commercial lease fee at 5% and the residential rent at 4%<\/strong>, the in-depth<br\/>analysis of the property carried out by Maximilien, who was in charge of this project, enabled him to<br\/>achieve <strong>4.33% profitability<\/strong>, even when estimating the lease for the commercial ground floor at the<br\/>low end of the market price.Cela laissait donc une marge dans le cas o\u00f9 le local resterait vide<br\/>pendant plusieurs mois et\/ou devions envisager d\u2019effectuer une partie des travaux \u00e0 la<br\/>charge du propri\u00e9taire, tout en assurant une rentabilit\u00e9 sup\u00e9rieure au march\u00e9 du moment.As such, this left a margin in case the premises remained empty for several months for several<br\/>months and\/or we had to envisage carrying out some of the work at the owner#39;s expense, whilst<br\/>ensuring a return higher than the current market rate.En pesant le pour et le contre, nous avons estim\u00e9 qu\u2019il s\u2019agissait donc bel et bien d\u2019une<br\/>opportunit\u00e9 \u00e0 saisir malgr\u00e9 la variable inconnue de la mise en location, et nous avons<br\/>conseill\u00e9 notre client \u00e0 acheter, en toute transparence des risques potentiels.<br\/>Une fois que le client f\u00fbt officiellement propri\u00e9taire, il d\u00e9cida de nous confier la mise<br\/>location de son immeuble.Weighing up the pros and cons, we felt that this was indeed an opportunity to be seized, despite the<br\/>unknown variable of letting the property, and we advised our advised our client to buy, whilst being<br\/>entirely transparent about the potential risks.<br\/>Once the client was the official owner, he decided to entrust us with the letting of his property.Le d\u00e9fi de louer un rez commercial cascoThe challenge of letting a shell commercial ground floorGr\u00e2ce au loyer peu \u00e9lev\u00e9 (1400\u20ac pour 135 m\u00e8tres carr\u00e9s), de nombreux candidats furent<br\/>curieux de visiter le rez commercial.<br\/>Mais malheureusement et comme nous l\u2019attendions, la plupart d\u2019entre eux n\u2019avaient pas le<br\/>budget ni l\u2019\u00e9nergie de devoir g\u00e9rer un chantier de cette envergure pour mettre le local en<br\/>\u00e9tat.<br\/>Gr\u00e2ce \u00e0 une bonne dose de pers\u00e9v\u00e9rance, nous avons fini par trouver des candidats s\u00e9rieux<br\/>avec un projet prometteur, qui \u00e9taient pr\u00eats \u00e0 s\u2019investir dans les d\u00e9marches li\u00e9es \u00e0 la gestion<br\/>du chantier.\nNous tenions enfin une piste solide ! Thanks to the low rent (\u20ac 1,400 for 135 square metres), many applicants were curious enough to<br\/>visiting the ground floor.<br\/>Unfortunately, and as expected, most of them did not have the budget nor the energy to manage a<br\/>site of this scale to get the premises ready for operational use.<br\/>With a good dose of perseverance, we ended up finding some serious candidates with a promising<br\/>project, who were prepared to invest in the steps required to finish the site. We finally had a solid<br\/>lead!Malheureusement, ils se sont vite d\u00e9courag\u00e9s apr\u00e8s avoir r\u00e9alis\u00e9 le co\u00fbt que les travaux repr\u00e9senteraient.\nUne fois le devis de leur entrepreneur en main, ils \u00e9taient toujours pr\u00eats \u00e0 louer la surface commerciale et \u00e0 investir dans les am\u00e9nagements n\u00e9cessaires, mais \u00e0 la condition que le propri\u00e9taire participe<br\/>\u00e0 l\u2019effort financier.Sadly, they soon lost heart when they realised how much the work would cost. Once they had<br\/>received their contractor#39;s estimate however, they were still prepared to rent the retail space and<br\/>invest in carrying out the improvements required, albeit on condition that the owner contributed to<br\/>the financial effort.Le d\u00e9fi \u00e9tait de taille, mais nous avons voulu relev\u00e9 le challenge de maximiser la rentabilit\u00e9<br\/>attendue par le propri\u00e9taire, tout en p\u00e9rennisant une relation win-win et de confiance avec<br\/>les futurs locataires.The project was a major challenge, but we wanted to rise to the challenge of maximising the<br\/>profitability expected by the owner, whilst at the same time building a win-win relationship of trust<br\/>with the future tenants.Lors de plusieurs rendez-vous dans nos bureaux avec le propri\u00e9taire et les candidats-<br\/>locataires, nous avons pu \u00e9changer, s\u2019\u00e9couter et argumenter pour aboutir \u00e0 un accord sur un<br\/>investissement de la part du<strong> bailleur \u00e0 hauteur de 2 500 euros<\/strong> sur la totalit\u00e9 des travaux et<br\/>trois mois de gratuit\u00e9 de loyer pendant la dur\u00e9e du chantier.<br\/>Finalement, le bail f\u00fbt sign\u00e9 apr\u00e8s seulement deux mois de recherche !During several meetings at our office with the owner and the prospective tenants, we were able to<br\/>discuss, listen to and argue with one another, and came to an agreement on an investment by the<br\/><strong>landlord of 2,500 euros<\/strong> for all the works and three months&#8217; free rent for the duration of the works.<br\/>In the end, the lease was signed after just two months of searching!Trois appartements neufs \u00e0 louer \u00e0 l\u2019entr\u00e9e de la p\u00e9riode hivernaleThree new flats to let at the start of the winter seasonLa r\u00e9novation des appartements de cet immeuble atteignait un standard de qualit\u00e9<br\/>rarement vu dans l\u2019immobilier Bruxellois : triple vitrage, belle luminosit\u00e9, \u00e9lectrom\u00e9nager et<br\/>mat\u00e9riaux de standing, bonne localisation, PEB A, etc.<br\/>Pour autant, en sachant que les p\u00e9riodes o\u00f9 la demande locative est la plus forte se situent<br\/>entre avril et juin, puis entre septembre et octobre ; la mise en location d\u00e9but novembre ne<br\/>jouait clairement pas en notre faveur.The flats in this building had been renovated to a standard rarely seen on the Brussels property<br\/>market: triple glazing, plenty of natural light, luxury appliances and materials, good location, EPIC A,<br\/>etc.<br\/>However, bearing in mind that demand for flats to rent is at its highest between April and June, and<br\/>then between September and October, trying to let these flats in early November clearly did not do<br\/>us any favours.De plus, le march\u00e9 locatif est toujours soumis \u00e0 l\u2019offre du march\u00e9 : plus il y a de logements<br\/>en location, plus il est n\u00e9cessaire de se d\u00e9marquer de la concurrence.<br\/>Apr\u00e8s quelques semaines, nous avions eu de nombreuses visites et personnes int\u00e9ress\u00e9es,<br\/>mais aucune candidature concr\u00e8te.What&#8217;s more, the rental market is always subject to the supply side of the market: the more<br\/>properties are available to rent, the more you need to stand out from the competition. After a few<br\/>weeks, we had a number of visits and people who expressed an interest, but no concrete<br\/>applications.Nous avons r\u00e9alis\u00e9 une \u00e9tude du march\u00e9 locatif du quartier, qui a mis en \u00e9vidence une forte<br\/>concurrence \u00e0 des prix cass\u00e9s.<br\/>Afin de ne pas diminuer les loyers, nous avions d\u2019abord d\u00e9cid\u00e9 d\u2019apporter des am\u00e9liorations<br\/>aux appartements. We conducted a study of the quarter\u2019s rental market, which revealed strong competition at cut-<br\/>throat prices. So as to reduce rents, we first decided to raise the standard of the flats by making<br\/>improvements.Nous avons propos\u00e9 au propri\u00e9taire de les \u00e9quiper d\u2019une machine \u00e0 laver<br\/>et de rails \u00e0 rideaux, et d\u2019\u00e9quiper la pi\u00e8ce \u00e0 vivre de lustres.\nCela aurait donn\u00e9 un avantage<br\/>consid\u00e9rable au locataire, et apport\u00e9 un touche esth\u00e9tique favorisant le coup de c\u0153ur.<br\/>Une fois l\u2019accord obtenu de la part de notre client, nous avons entam\u00e9 nos recherches pour<br\/>trouver les \u00e9quipements au meilleur rapport qualit\u00e9\/prix et contact\u00e9 notre entrepreneur<br\/>pour obtenir un devis.We suggested that the owner fit them out with a washing machine and curtain rails and the living<br\/>room with chandeliers. This would give prospective tenants a nice upgrade as well as adding an<br\/>aesthetic touch that would make them fall in love with the property. Once our client had agreed, we<br\/>embarked on a search for the best value for money equipment and got in touch with our contractor<br\/>for a quote.Malheureusement, son indisponibilit\u00e9 pour les prochaines semaines ainsi que le co\u00fbt que<br\/>repr\u00e9sentait cet investissement nous a pouss\u00e9 \u00e0 revoir notre strat\u00e9gie.<br\/>En effet, le co\u00fbt de l\u2019investissement par appartement repr\u00e9sentait quasiment un mois de<br\/>loyer (donc trois loyers au total pour les trois appartements), sans compter que nous<br\/>devions compter un mois de d\u00e9lai suppl\u00e9mentaire pour que notre entrepreneur soit<br\/>disponible et pour recevoir la marchandise.\nCela nous aurait amen\u00e9s \u00e0 devoir trouver un<br\/>locataire en plein hiver, chose que nous voulions absolument \u00e9viter car la t\u00e2che se serait<br\/>av\u00e9r\u00e9e encore plus compliqu\u00e9e.<br\/>Concr\u00e8tement, cela signifiait que pour chaque appartement, il fallait compter un mois de<br\/>loyer en investissement, et un mois de vide locatif minimum le temps des travaux, ainsi queUnfortunately, the fact that he was unavailable for the next few weeks as well as the cost of this<br\/>investment, led us to reconsider our strategy.<br\/>In fact, the cost of the investment per flat represented almost a month#39;s rent (so three rents in total for the three flats), not to mention the fact that we had to allow an extra month for our contractor to be available and for the appliances and other goods to come in. This would have meant having to find a tenant in the middle of winter, something we absolutely wanted to avoid as it would have made things even more complicated.<br\/>In practical terms, this meant that for each flat, we would need to reckon with one month#39;s rent as an investment and one month with each flat standing empty while the work was being carried out,<br\/>as well asle temps suppl\u00e9mentaire pour trouver des locataires en plein hiver.. soit une perte de<br\/>minimum deux mois de loyer pour le propri\u00e9taire, et pouvant aller jusqu\u2019\u00e0 bien plus.<br\/>Nous avons donc voulu r\u00e9duire l\u2019incertitude au maximum.\nNous avons \u00e9valu\u00e9 qu\u2019il serait<br\/>beaucoup moins risqu\u00e9 et surtout plus rentable de diminuer le loyer de cent euros et de<br\/>mettre les bouch\u00e9es doubles pour louer les appartements dans les deux semaines suivantes.<br\/>In fine, d\u00e8s que nous avons re\u00e7u l\u2019accord du propri\u00e9taire pour ajuster le loyer, nous avons<br\/>trouv\u00e9 les trois locataires sur une semaine de temps !<br\/>Cela a permis au propri\u00e9taire de limiter ses d\u00e9penses \u00e0 un mois de loyer par appartement.<br\/>Ayant pour habitude d\u2019agir en toute transparence avec nos clients, celui-ci \u00e9tait bien<br\/>conscient des difficult\u00e9s du march\u00e9 qui \u00e9taient en dehors de notre contr\u00f4le.\nNous avons<br\/>travaill\u00e9 main dans la main sur ce dossier et avons eu \u00e0 c\u0153ur de mettre notre r\u00e9activit\u00e9 et<br\/>nos id\u00e9es au service de la rentabilit\u00e9 de son investissement.\nC\u2019est ainsi que nos services lui<br\/>ont apport\u00e9 enti\u00e8re satisfaction.the extra time needed to find tenants in the middle of winter, i.e. a loss of at least two<br\/>month&#8217;s; rent for the landlord, which could end up being much more.<br\/>So we were keen to drive down the element of uncertainty as much as possible. We estimated that<br\/>it would be much less risky and, above all, more profitable to reduce the rent by a hundred euros<br\/>and to redouble our efforts to let the flats within the next two weeks.<br\/>In the end, as soon as we received the landlord#39;s consent to adjust the rent, we found three tenants<br\/>within a week!<br\/>This enabled the owner to limit his expenses to one month&#8217;s rent per flat. In line with our full<br\/>transparency policy with clients, he was well aware of the market challenges which were beyond our<br\/>control. We worked in tandem on this project and were keen to come up with the right ideas to<br\/>make sure his investment turned out to be profitable. That is how our services gave him complete<br\/>satisfaction.Il dit lui-m\u00eame :He himself has this to say:\u00ab J\u2019\u00e9tais bien conscient des risques li\u00e9s au vide locatif au moment o\u00f9 j\u2019ai d\u00e9cid\u00e9 de faire offre<br\/>sur cet immeuble.\nJ\u2019ai fait confiance \u00e0 l\u2019\u00e9quipe de BuyerSide et je n\u2019ai vraiment pas regrett\u00e9.<br\/>J\u2019ai tout autant appr\u00e9ci\u00e9 avancer main dans la main avec l\u2019\u00e9quipe d\u2019OwnerSide qui a compris<br\/>les enjeux d\u2019un propri\u00e9taire-investisseur et su d\u00e9fendre mes int\u00e9r\u00eats de fa\u00e7on intelligente.<br\/>J\u2019ai appr\u00e9ci\u00e9 la communication ouverte et les solutions qu\u2019ils m\u2019ont propos\u00e9 face aux<br\/>difficult\u00e9s rencontr\u00e9es.\nJe les ai trouv\u00e9 tr\u00e8s r\u00e9actifs et finalement j\u2019ai \u00e9t\u00e9 agr\u00e9ablement<br\/>surpris par la rapidit\u00e9 \u00e0 laquelle l\u2019immeuble a \u00e9t\u00e9 enti\u00e8rement lou\u00e9.\nCette op\u00e9ration \u00e9tait un<br\/>vrai succ\u00e8s. \u00bb\u201cI was duly aware of the vacancy risk when I decided to put in an offer on this building. I<br\/>put my trust in the BuyerSide team and I haven\u2019t regretted it for a second. I really enjoyed<br\/>working hand in hand with the OwnerSide team, who understood the issues faced by<br\/>landlord-investors and were able to defend my interests in an intelligent manner.<br\/>I appreciated the open communication and the solutions they came up with in light of the<br\/>difficulties encountered. I found them to be very responsive and I was pleasantly<br\/>surprised by the swiftness with which the building was fully let. The whole thing was a<br\/>real success.\u201d<\/p>\n\n<h2 class=\"wp-block-heading\"><br\/>A building with high profitability potential, but a high unoccupancy risk<\/h2>\n\n<p>Even though the building was completely stripped and rebuilt from scratch, the lower part of the<br\/>of the building, i.e. the ground floor which is intended to be used as commercial premises, was<br\/>delivered in its raw carcass work state at the time of the sale by the builder.<br\/><br\/>Well aware that trying to let the ground floor in that shell condition would pose considerable<br\/>difficulties, the BuyerSide team nevertheless decided to advise their client to purchase this building.\nEn effet, l\u2019am\u00e9nagement d\u2019un tel local, sans chape de b\u00e9ton au sol, sans arriv\u00e9e<br\/>d\u2019eau, de gaz, ni d\u2019\u00e9lectricit\u00e9, avec les murs enti\u00e8rement \u00e0 nue o\u00f9 tout est litt\u00e9ralement \u00e0<br\/>faire, repr\u00e9sente un investissement cons\u00e9quent pour le locataire entrant, ce qui limite<br\/>inexorablement le nombre de candidats potentiels \u00e0 la location, et augmente dans le m\u00eame<br\/>temps le risque de vide locatif.\nIl \u00e9tait donc indispensable que BuyerSide mesure le risque et<br\/>la rentabilit\u00e9 le plus pr\u00e9cis\u00e9ment possible de cet investissement avant de d\u00e9cider si oui ou<br\/>non l\u2019acquisition de cet immeuble en valait la peine pour notre client.In fact, the second fixing of such premises, with no concrete screed on the floor, no water, gas or<br\/>electricity supply, with the walls completely bare and literally everything remaining to be done,<br\/>represents a substantial investment for the incoming tenant, which inevitably greatly limits the<br\/>number of potential tenants, whilst simultaneously increasing the vacancy risk. This explains why it<br\/>was crucial for BuyerSide to quantify the risk and profitability of this investment as accurately as<br\/>possible before deciding whether or not to the acquisition of this building was worth the effort for<br\/>our client.C\u2019est ainsi qu\u2019en <strong>capitalisant le loyer commercial \u00e0 5% et le r\u00e9sidentiel \u00e0 4%<\/strong>, l\u2019analyse<br\/>approfondie du bien r\u00e9alis\u00e9e par Maximilien, en charge de ce dossier, lui a permis d\u2019aboutir<br\/>\u00e0 <strong>une rentabilit\u00e9 de 4,33%<\/strong>, m\u00eame en estimant le loyer du rez commercial dans la fourchette<br\/>basse des prix du march\u00e9. By<strong> capitalising the commercial lease fee at 5% and the residential rent at 4%<\/strong>, the in-depth<br\/>analysis of the property carried out by Maximilien, who was in charge of this project, enabled him to<br\/>achieve <strong>4.33% profitability<\/strong>, even when estimating the lease for the commercial ground floor at the<br\/>low end of the market price.Cela laissait donc une marge dans le cas o\u00f9 le local resterait vide<br\/>pendant plusieurs mois et\/ou devions envisager d\u2019effectuer une partie des travaux \u00e0 la<br\/>charge du propri\u00e9taire, tout en assurant une rentabilit\u00e9 sup\u00e9rieure au march\u00e9 du moment.As such, this left a margin in case the premises remained empty for several months for several<br\/>months and\/or we had to envisage carrying out some of the work at the owner#39;s expense, whilst<br\/>ensuring a return higher than the current market rate.En pesant le pour et le contre, nous avons estim\u00e9 qu\u2019il s\u2019agissait donc bel et bien d\u2019une<br\/>opportunit\u00e9 \u00e0 saisir malgr\u00e9 la variable inconnue de la mise en location, et nous avons<br\/>conseill\u00e9 notre client \u00e0 acheter, en toute transparence des risques potentiels.<br\/>Une fois que le client f\u00fbt officiellement propri\u00e9taire, il d\u00e9cida de nous confier la mise<br\/>location de son immeuble.Weighing up the pros and cons, we felt that this was indeed an opportunity to be seized, despite the<br\/>unknown variable of letting the property, and we advised our advised our client to buy, whilst being<br\/>entirely transparent about the potential risks.<br\/>Once the client was the official owner, he decided to entrust us with the letting of his property.Le d\u00e9fi de louer un rez commercial cascoThe challenge of letting a shell commercial ground floorGr\u00e2ce au loyer peu \u00e9lev\u00e9 (1400\u20ac pour 135 m\u00e8tres carr\u00e9s), de nombreux candidats furent<br\/>curieux de visiter le rez commercial.<br\/>Mais malheureusement et comme nous l\u2019attendions, la plupart d\u2019entre eux n\u2019avaient pas le<br\/>budget ni l\u2019\u00e9nergie de devoir g\u00e9rer un chantier de cette envergure pour mettre le local en<br\/>\u00e9tat.<br\/>Gr\u00e2ce \u00e0 une bonne dose de pers\u00e9v\u00e9rance, nous avons fini par trouver des candidats s\u00e9rieux<br\/>avec un projet prometteur, qui \u00e9taient pr\u00eats \u00e0 s\u2019investir dans les d\u00e9marches li\u00e9es \u00e0 la gestion<br\/>du chantier.\nNous tenions enfin une piste solide ! Thanks to the low rent (\u20ac 1,400 for 135 square metres), many applicants were curious enough to<br\/>visiting the ground floor.<br\/>Unfortunately, and as expected, most of them did not have the budget nor the energy to manage a<br\/>site of this scale to get the premises ready for operational use.<br\/>With a good dose of perseverance, we ended up finding some serious candidates with a promising<br\/>project, who were prepared to invest in the steps required to finish the site. We finally had a solid<br\/>lead!Malheureusement, ils se sont vite d\u00e9courag\u00e9s apr\u00e8s avoir r\u00e9alis\u00e9 le co\u00fbt que les travaux repr\u00e9senteraient.\nUne fois le devis de leur entrepreneur en main, ils \u00e9taient toujours pr\u00eats \u00e0 louer la surface commerciale et \u00e0 investir dans les am\u00e9nagements n\u00e9cessaires, mais \u00e0 la condition que le propri\u00e9taire participe<br\/>\u00e0 l\u2019effort financier.Sadly, they soon lost heart when they realised how much the work would cost. Once they had<br\/>received their contractor#39;s estimate however, they were still prepared to rent the retail space and<br\/>invest in carrying out the improvements required, albeit on condition that the owner contributed to<br\/>the financial effort.Le d\u00e9fi \u00e9tait de taille, mais nous avons voulu relev\u00e9 le challenge de maximiser la rentabilit\u00e9<br\/>attendue par le propri\u00e9taire, tout en p\u00e9rennisant une relation win-win et de confiance avec<br\/>les futurs locataires.The project was a major challenge, but we wanted to rise to the challenge of maximising the<br\/>profitability expected by the owner, whilst at the same time building a win-win relationship of trust<br\/>with the future tenants.Lors de plusieurs rendez-vous dans nos bureaux avec le propri\u00e9taire et les candidats-<br\/>locataires, nous avons pu \u00e9changer, s\u2019\u00e9couter et argumenter pour aboutir \u00e0 un accord sur un<br\/>investissement de la part du<strong> bailleur \u00e0 hauteur de 2 500 euros<\/strong> sur la totalit\u00e9 des travaux et<br\/>trois mois de gratuit\u00e9 de loyer pendant la dur\u00e9e du chantier.<br\/>Finalement, le bail f\u00fbt sign\u00e9 apr\u00e8s seulement deux mois de recherche !During several meetings at our office with the owner and the prospective tenants, we were able to<br\/>discuss, listen to and argue with one another, and came to an agreement on an investment by the<br\/><strong>landlord of 2,500 euros<\/strong> for all the works and three months&#8217; free rent for the duration of the works.<br\/>In the end, the lease was signed after just two months of searching!Trois appartements neufs \u00e0 louer \u00e0 l\u2019entr\u00e9e de la p\u00e9riode hivernaleThree new flats to let at the start of the winter seasonLa r\u00e9novation des appartements de cet immeuble atteignait un standard de qualit\u00e9<br\/>rarement vu dans l\u2019immobilier Bruxellois : triple vitrage, belle luminosit\u00e9, \u00e9lectrom\u00e9nager et<br\/>mat\u00e9riaux de standing, bonne localisation, PEB A, etc.<br\/>Pour autant, en sachant que les p\u00e9riodes o\u00f9 la demande locative est la plus forte se situent<br\/>entre avril et juin, puis entre septembre et octobre ; la mise en location d\u00e9but novembre ne<br\/>jouait clairement pas en notre faveur.The flats in this building had been renovated to a standard rarely seen on the Brussels property<br\/>market: triple glazing, plenty of natural light, luxury appliances and materials, good location, EPIC A,<br\/>etc.<br\/>However, bearing in mind that demand for flats to rent is at its highest between April and June, and<br\/>then between September and October, trying to let these flats in early November clearly did not do<br\/>us any favours.De plus, le march\u00e9 locatif est toujours soumis \u00e0 l\u2019offre du march\u00e9 : plus il y a de logements<br\/>en location, plus il est n\u00e9cessaire de se d\u00e9marquer de la concurrence.<br\/>Apr\u00e8s quelques semaines, nous avions eu de nombreuses visites et personnes int\u00e9ress\u00e9es,<br\/>mais aucune candidature concr\u00e8te.What&#8217;s more, the rental market is always subject to the supply side of the market: the more<br\/>properties are available to rent, the more you need to stand out from the competition. After a few<br\/>weeks, we had a number of visits and people who expressed an interest, but no concrete<br\/>applications.Nous avons r\u00e9alis\u00e9 une \u00e9tude du march\u00e9 locatif du quartier, qui a mis en \u00e9vidence une forte<br\/>concurrence \u00e0 des prix cass\u00e9s.<br\/>Afin de ne pas diminuer les loyers, nous avions d\u2019abord d\u00e9cid\u00e9 d\u2019apporter des am\u00e9liorations<br\/>aux appartements. We conducted a study of the quarter\u2019s rental market, which revealed strong competition at cut-<br\/>throat prices. So as to reduce rents, we first decided to raise the standard of the flats by making<br\/>improvements.Nous avons propos\u00e9 au propri\u00e9taire de les \u00e9quiper d\u2019une machine \u00e0 laver<br\/>et de rails \u00e0 rideaux, et d\u2019\u00e9quiper la pi\u00e8ce \u00e0 vivre de lustres.\nCela aurait donn\u00e9 un avantage<br\/>consid\u00e9rable au locataire, et apport\u00e9 un touche esth\u00e9tique favorisant le coup de c\u0153ur.<br\/>Une fois l\u2019accord obtenu de la part de notre client, nous avons entam\u00e9 nos recherches pour<br\/>trouver les \u00e9quipements au meilleur rapport qualit\u00e9\/prix et contact\u00e9 notre entrepreneur<br\/>pour obtenir un devis.We suggested that the owner fit them out with a washing machine and curtain rails and the living<br\/>room with chandeliers. This would give prospective tenants a nice upgrade as well as adding an<br\/>aesthetic touch that would make them fall in love with the property. Once our client had agreed, we<br\/>embarked on a search for the best value for money equipment and got in touch with our contractor<br\/>for a quote.Malheureusement, son indisponibilit\u00e9 pour les prochaines semaines ainsi que le co\u00fbt que<br\/>repr\u00e9sentait cet investissement nous a pouss\u00e9 \u00e0 revoir notre strat\u00e9gie.<br\/>En effet, le co\u00fbt de l\u2019investissement par appartement repr\u00e9sentait quasiment un mois de<br\/>loyer (donc trois loyers au total pour les trois appartements), sans compter que nous<br\/>devions compter un mois de d\u00e9lai suppl\u00e9mentaire pour que notre entrepreneur soit<br\/>disponible et pour recevoir la marchandise.\nCela nous aurait amen\u00e9s \u00e0 devoir trouver un<br\/>locataire en plein hiver, chose que nous voulions absolument \u00e9viter car la t\u00e2che se serait<br\/>av\u00e9r\u00e9e encore plus compliqu\u00e9e.<br\/>Concr\u00e8tement, cela signifiait que pour chaque appartement, il fallait compter un mois de<br\/>loyer en investissement, et un mois de vide locatif minimum le temps des travaux, ainsi queUnfortunately, the fact that he was unavailable for the next few weeks as well as the cost of this<br\/>investment, led us to reconsider our strategy.<br\/>In fact, the cost of the investment per flat represented almost a month#39;s rent (so three rents in total for the three flats), not to mention the fact that we had to allow an extra month for our contractor to be available and for the appliances and other goods to come in. This would have meant having to find a tenant in the middle of winter, something we absolutely wanted to avoid as it would have made things even more complicated.<br\/>In practical terms, this meant that for each flat, we would need to reckon with one month#39;s rent as an investment and one month with each flat standing empty while the work was being carried out,<br\/>as well asle temps suppl\u00e9mentaire pour trouver des locataires en plein hiver.. soit une perte de<br\/>minimum deux mois de loyer pour le propri\u00e9taire, et pouvant aller jusqu\u2019\u00e0 bien plus.<br\/>Nous avons donc voulu r\u00e9duire l\u2019incertitude au maximum.\nNous avons \u00e9valu\u00e9 qu\u2019il serait<br\/>beaucoup moins risqu\u00e9 et surtout plus rentable de diminuer le loyer de cent euros et de<br\/>mettre les bouch\u00e9es doubles pour louer les appartements dans les deux semaines suivantes.<br\/>In fine, d\u00e8s que nous avons re\u00e7u l\u2019accord du propri\u00e9taire pour ajuster le loyer, nous avons<br\/>trouv\u00e9 les trois locataires sur une semaine de temps !<br\/>Cela a permis au propri\u00e9taire de limiter ses d\u00e9penses \u00e0 un mois de loyer par appartement.<br\/>Ayant pour habitude d\u2019agir en toute transparence avec nos clients, celui-ci \u00e9tait bien<br\/>conscient des difficult\u00e9s du march\u00e9 qui \u00e9taient en dehors de notre contr\u00f4le.\nNous avons<br\/>travaill\u00e9 main dans la main sur ce dossier et avons eu \u00e0 c\u0153ur de mettre notre r\u00e9activit\u00e9 et<br\/>nos id\u00e9es au service de la rentabilit\u00e9 de son investissement.\nC\u2019est ainsi que nos services lui<br\/>ont apport\u00e9 enti\u00e8re satisfaction.the extra time needed to find tenants in the middle of winter, i.e. a loss of at least two<br\/>month&#8217;s; rent for the landlord, which could end up being much more.<br\/>So we were keen to drive down the element of uncertainty as much as possible. We estimated that<br\/>it would be much less risky and, above all, more profitable to reduce the rent by a hundred euros<br\/>and to redouble our efforts to let the flats within the next two weeks.<br\/>In the end, as soon as we received the landlord#39;s consent to adjust the rent, we found three tenants<br\/>within a week!<br\/>This enabled the owner to limit his expenses to one month&#8217;s rent per flat. In line with our full<br\/>transparency policy with clients, he was well aware of the market challenges which were beyond our<br\/>control. We worked in tandem on this project and were keen to come up with the right ideas to<br\/>make sure his investment turned out to be profitable. That is how our services gave him complete<br\/>satisfaction.Il dit lui-m\u00eame :He himself has this to say:\u00ab J\u2019\u00e9tais bien conscient des risques li\u00e9s au vide locatif au moment o\u00f9 j\u2019ai d\u00e9cid\u00e9 de faire offre<br\/>sur cet immeuble.\nJ\u2019ai fait confiance \u00e0 l\u2019\u00e9quipe de BuyerSide et je n\u2019ai vraiment pas regrett\u00e9.<br\/>J\u2019ai tout autant appr\u00e9ci\u00e9 avancer main dans la main avec l\u2019\u00e9quipe d\u2019OwnerSide qui a compris<br\/>les enjeux d\u2019un propri\u00e9taire-investisseur et su d\u00e9fendre mes int\u00e9r\u00eats de fa\u00e7on intelligente.<br\/>J\u2019ai appr\u00e9ci\u00e9 la communication ouverte et les solutions qu\u2019ils m\u2019ont propos\u00e9 face aux<br\/>difficult\u00e9s rencontr\u00e9es.\nJe les ai trouv\u00e9 tr\u00e8s r\u00e9actifs et finalement j\u2019ai \u00e9t\u00e9 agr\u00e9ablement<br\/>surpris par la rapidit\u00e9 \u00e0 laquelle l\u2019immeuble a \u00e9t\u00e9 enti\u00e8rement lou\u00e9.\nCette op\u00e9ration \u00e9tait un<br\/>vrai succ\u00e8s. \u00bb\u201cI was duly aware of the vacancy risk when I decided to put in an offer on this building. I<br\/>put my trust in the BuyerSide team and I haven\u2019t regretted it for a second. I really enjoyed<br\/>working hand in hand with the OwnerSide team, who understood the issues faced by<br\/>landlord-investors and were able to defend my interests in an intelligent manner.<br\/>I appreciated the open communication and the solutions they came up with in light of the<br\/>difficulties encountered. I found them to be very responsive and I was pleasantly<br\/>surprised by the swiftness with which the building was fully let. The whole thing was a<br\/>real success.\u201d <br\/><br\/>In fact, the second fixing of such premises, with no concrete screed on the floor, no water, gas or<br\/>electricity supply, with the walls completely bare and literally everything remaining to be done,<br\/>represents a substantial investment for the incoming tenant, which inevitably greatly limits the<br\/>number of potential tenants, whilst simultaneously increasing the vacancy risk. This explains why it<br\/>was crucial for BuyerSide to quantify the risk and profitability of this investment as accurately as<br\/>possible before deciding whether or not to the acquisition of this building was worth the effort for<br\/>our client. <br\/><br\/>By<strong> capitalising the commercial lease fee at 5% and the residential rent at 4%<\/strong>, the in-depth<br\/>analysis of the property carried out by Maximilien, who was in charge of this project, enabled him to<br\/>achieve <strong>4.33% profitability<\/strong>, even when estimating the lease for the commercial ground floor at the<br\/>low end of the market price. <br\/><br\/>As such, this left a margin in case the premises remained empty for several months for several<br\/>months and\/or we had to envisage carrying out some of the work at the owner#39;s expense, whilst<br\/>ensuring a return higher than the current market rate.<br\/><br\/>Weighing up the pros and cons, we felt that this was indeed an opportunity to be seized, despite the<br\/>unknown variable of letting the property, and we advised our advised our client to buy, whilst being<br\/>entirely transparent about the potential risks.<br\/>Once the client was the official owner, he decided to entrust us with the letting of his property.<br\/><\/p>\n\n<h2 class=\"wp-block-heading\">The challenge of letting a shell commercial ground floor<\/h2>\n\n<p>Thanks to the low rent (\u20ac 1,400 for 135 square metres), many applicants were curious enough to<br\/>visiting the ground floor.<br\/>Unfortunately, and as expected, most of them did not have the budget nor the energy to manage a<br\/>site of this scale to get the premises ready for operational use.<br\/>With a good dose of perseverance, we ended up finding some serious candidates with a promising<br\/>project, who were prepared to invest in the steps required to finish the site. We finally had a solid<br\/>lead!  <\/p>\n\n<p>Sadly, they soon lost heart when they realised how much the work would cost. Once they had<br\/>received their contractor#39;s estimate however, they were still prepared to rent the retail space and<br\/>invest in carrying out the improvements required, albeit on condition that the owner contributed to<br\/>the financial effort. <br\/><\/p>\n\n<p>The project was a major challenge, but we wanted to rise to the challenge of maximising the<br\/>profitability expected by the owner, whilst at the same time building a win-win relationship of trust<br\/>with the future tenants.<\/p>\n\n<p><br\/>During several meetings at our office with the owner and the prospective tenants, we were able to<br\/>discuss, listen to and argue with one another, and came to an agreement on an investment by the<br\/><strong>landlord of 2,500 euros<\/strong> for all the works and three months&#8217; free rent for the duration of the works.<br\/>In the end, the lease was signed after just two months of searching!<\/p>\n\n<h2 class=\"wp-block-heading\">Three new flats to let at the start of the winter season<\/h2>\n\n<p>The flats in this building had been renovated to a standard rarely seen on the Brussels property<br\/>market: triple glazing, plenty of natural light, luxury appliances and materials, good location, EPIC A,<br\/>etc.<br\/>However, bearing in mind that demand for flats to rent is at its highest between April and June, and<br\/>then between September and October, trying to let these flats in early November clearly did not do<br\/>us any favours.<\/p>\n\n<p><br\/>What&#8217;s more, the rental market is always subject to the supply side of the market: the more<br\/>properties are available to rent, the more you need to stand out from the competition. After a few<br\/>weeks, we had a number of visits and people who expressed an interest, but no concrete<br\/>applications.<\/p>\n\n<p><br\/>We conducted a study of the quarter\u2019s rental market, which revealed strong competition at cut-<br\/>throat prices. So as to reduce rents, we first decided to raise the standard of the flats by making<br\/>improvements. <\/p>\n\n<p>We suggested that the owner fit them out with a washing machine and curtain rails and the living<br\/>room with chandeliers. This would give prospective tenants a nice upgrade as well as adding an<br\/>aesthetic touch that would make them fall in love with the property. Once our client had agreed, we<br\/>embarked on a search for the best value for money equipment and got in touch with our contractor<br\/>for a quote. <br\/><\/p>\n\n<p>Unfortunately, the fact that he was unavailable for the next few weeks as well as the cost of this<br\/>investment, led us to reconsider our strategy.<br\/>In fact, the cost of the investment per flat represented almost a month#39;s rent (so three rents in total for the three flats), not to mention the fact that we had to allow an extra month for our contractor to be available and for the appliances and other goods to come in. This would have meant having to find a tenant in the middle of winter, something we absolutely wanted to avoid as it would have made things even more complicated.<br\/>In practical terms, this meant that for each flat, we would need to reckon with one month#39;s rent as an investment and one month with each flat standing empty while the work was being carried out,<br\/>as well as <\/p>\n\n<p>the extra time needed to find tenants in the middle of winter, i.e. a loss of at least two<br\/>month&#8217;s; rent for the landlord, which could end up being much more.<br\/>So we were keen to drive down the element of uncertainty as much as possible. We estimated that<br\/>it would be much less risky and, above all, more profitable to reduce the rent by a hundred euros<br\/>and to redouble our efforts to let the flats within the next two weeks.<br\/>In the end, as soon as we received the landlord#39;s consent to adjust the rent, we found three tenants<br\/>within a week!<br\/>This enabled the owner to limit his expenses to one month&#8217;s rent per flat. In line with our full<br\/>transparency policy with clients, he was well aware of the market challenges which were beyond our<br\/>control. We worked in tandem on this project and were keen to come up with the right ideas to<br\/>make sure his investment turned out to be profitable. That is how our services gave him complete<br\/>satisfaction.   <\/p>\n\n<p>He himself has this to say:<\/p>\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cI was duly aware of the vacancy risk when I decided to put in an offer on this building. I<br\/>put my trust in the BuyerSide team and I haven\u2019t regretted it for a second. I really enjoyed<br\/>working hand in hand with the OwnerSide team, who understood the issues faced by<br\/>landlord-investors and were able to defend my interests in an intelligent manner.<br\/>I appreciated the open communication and the solutions they came up with in light of the<br\/>difficulties encountered. I found them to be very responsive and I was pleasantly<br\/>surprised by the swiftness with which the building was fully let. The whole thing was a<br\/>real success.\u201d   <\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>OwnerSide was recently asked by one of its clients to put up for rent a building which he hadpurchased a few months earlier through our partner (sister company ?) BuyerSide. Despite the fact that the building was brand new, there were major challenges to be overcome inorder to avoid it being left unoccupied on the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5383,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":8,"footnotes":""},"categories":[176],"tags":[],"class_list":["post-5556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/posts\/5556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/comments?post=5556"}],"version-history":[{"count":2,"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/posts\/5556\/revisions"}],"predecessor-version":[{"id":6696,"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/posts\/5556\/revisions\/6696"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/media\/5383"}],"wp:attachment":[{"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/media?parent=5556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/categories?post=5556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ownerside.be\/en\/wp-json\/wp\/v2\/tags?post=5556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}