fxdaemonParticipant@fxdaemonJoin Date: 2013Post Count: 114bclarkeParticipant@bclarkeJoin Date: 2013Post Count: 7
I work with EBM, one of the leading privately owned insurance brokers in Australia. We have an exclusive product for commercial properties that should fit what you are after. Although we have done residential landlord insurance for over 25 years the commercial product is only very new and we haven’t done a full release of it as yet, but I can get someone to talk to you about it if you wish and they can certainly arrange it. If you would like me to get someone to contact you just send me a private message with your best contact number.
CGU Padlock also has provision for LL insurance, ask your broker.
If you already hold a 3 month bank guarantee or cash bond do you really require additional security?
In over 30 years association with commercial property ($x00,000,000 under management), I have seen very few instances where it may have been useful.
I have inquired but even my broker has not put forward any justification fot it. Money best kept in your pocket.
fxdaemonParticipant@fxdaemonJoin Date: 2013Post Count: 114
- This reply was modified 3 years, 5 months ago by Scott No Mates.
I guess choosing the right tenant is the key here. However, I’ve seen many retail businesses suddenly
close shops without any tell tale sign even for some popular franchise brands.
Although by right outgoing tenant should (must?) find and re-assign the lease to new tenant in reality
how often does that actually happen?
Therefore, I really want to understand what mitigations available to minimise the loss before I get
into the retail sector of the market. I am not 100% sure what seems to be over heated retail sector
translates to more stable and constant cash flow is my main concern.
Retailers don’t suddenly go belly up. There are plenty of twll tale signs – rental arrears, lack of stock, decreasing freshness of product, cleaning issues, decreased opening hours, staff reductions etc.
Other mitigations available include director or franchisor guarantees.
Retail leases often have provisions for the reporting of monthly turnover and annual audits – this orovides valuable insights into the business.