Making money as a landlord – outgoing recoveries (Part 1)

Landlords’ primary business motivation is to maximise their revenues and dedicate their efforts working out how they get more money out of their tenants. Tenants, on the other hand, as occupier businesses in leased premises, have their attention focused on maximising profits from their business model.

One of the often neglected components of the cost of doing business is the idiosyncrasies of many complex clauses in lease agreements. For tenants, details are treated as unwanted business distractions, but these are great opportunities for landlords to exploit, collecting even more money from their tenants. As an example, the complexities presented in outgoings recovery clauses, in this uneven playing field, are ideal for landlords to improve investment returns. Although the rent is the primary source of income from properties, other non-rental cost recoveries all contribute to providing an overall income boost, or at least covering most landlord overhead costs.

For both landlords