subject: Letting your property to a charity [print this page] Letting your property to a charity Letting your property to a charity
Letting your Property to a Charity
There has been such a growth in charitable organisations over the past 2 decades, that we accept them in most walks of life. I guess the proliferation is due in large to our far greater prosperity, and a need to adjust our feelings of affluence by contributing to those less fortunate.
Charity is now big business Oxfam springs to mind, but organisation such as The National Trust, most local hospices, historical and preservation societies all have charitable status. A quick check on Google reveals one directory alone containing 10,000 charities.
Of course our high streets would not be complete without the obligatory charity shop representation, and to back those up there must be regional centres, administrative offices, even residential accommodation.
Whilst the more profitable and progressive charities aspire to ownership of freeholds, (however dubious the reasoning behind this particular thrust may be) many charities take up leaseholds which may more aptly suit their charitable status.
Charities for the homeless require bedsits, flats and communal premises for those under their care. Trading charities require storage, packing, warehousing and distribution to support their national and international activities. Preservation and historical charities require administrative headquarters, workshops, cafes and car parks. Often they hold leases on the very premises and sites they are preserving.
From a landlords perspective a charity as a tenant represents a mixed proposition.
On the one hand a reasonable landlord might wonder about nuisance value, accountability, sustainability and the overall quality of covenant. But a quick review of the 10,000 charities in that Google list reveals many substantial operations with far more robust management and better funding than the average small business. And whilst this too may be an irksome comparison for a struggling small business owner, as all landlords know, the quality of covenant is vital when considering the suitability of a tenant.
Good research and sound legal advice at the outset should ensure a smooth passage for both parties.
Charities are now by and large extremely well run, with a strong hierarchy to provide solid and substantial backing. This combined with good income flows from grants, donations and established trading operations makes many charities a very attractive proposition.
We value all enquiries at www.somerset-warehouses.co.uk. We hope to provide a perfect solution for charitable or non-charitable prospects, either from our existing portfolio or by finding a suitable investment to match their needs.
Whether you are considering a charity as a tenant for residential or commercial premises, a forward-thinking landlord could do a great deal worse, whether as a short or long term prospect. At least a charity will not go bust on you!
