Bay of Plenty Business News January/February 2018

More documents

Recommendations

Info

22 BAY OF PLENTY BUSINESS NEWS January/February 2018 100% RECYCLED AND ECO-FRIENDLY DECKING Low maintenance | Easy installation FROM THE GROUND UP How sub-leasing office space can benefit your business PRODUCTS • Cladding • Fencing • Pedestal Futurewood is a branded Plastic Wood Composite (PWC) made from 100% recycled materials. At Futurewood we are dedicated to providing you with stylish, quality, low maintenance and value added alternatives to traditional timber products. 100% replacement warranty over 15 years For a free sample pack and/or further information, please call 0800 88 88 42, email info@futurewood.nz or visit www.futurewood.nz P3373Y So, you’ve got your office up and running and ticking along but now you find that you have committed to more space than you actually need. Maybe your business structure has changed and some of your staff now work from home. Perhaps you’ve consolidated your service offering and made efficiencies which means you don’t need to have as many staff. Or possibly, the business expansion you’d banked on hasn’t come to pass. Whatever the reason, you do have options. You could: Sub-lease some of the space – another business shares your business premises Assign the existing lease – you leave and another business takes over your existing lease on the same terms (note: you could still be liable for the new tenant’s obligations if that tenant defaults) Surrender your lease – you vacate and the landlord negotiates with a new tenant At all times you’ll need to bear in mind your responsibilities and commitments under your existing lease. You will have contractual obligations to fulfil and tenant/ landlord ducks to get in a row. A signed lease generally requires a landlord’s express permission/consent to change the terms of that lease. However, while a landlord cannot ‘unreasonably’ withhold or delay consent to sublease or assign a lease, you are changing the original agreed terms of the lease and the landlord may not see things the same way you do. Let’s focus on sub-leasing here. Like most things in business – and life – there are pros and cons associated with change. Sub-leasing Pros: • You get a contribution to your rental outgoings and you may be able to negotiate proportionally-shared operating costs • You don’t have to relocate your business to smaller premises and so can avoid the headaches that moving can bring • Think of the networking benefits in having another business within your everyday space • There could be some crossover of required administrative services and you may be able to share those costs • It’s a better use of space and that could sit well with your “tread lightly’ eco-principles • You’re in control of the sub-lease timeframe and you can factor in flexibility should you need to crank your operation in the future • Creates a bit of a buzz around the water cooler – new faces, new thinking. Sub-leasing Cons: • You still have all the responsibilities under your existing lease – the buck stops with you • You may find that there’s extra wear and tear on the premises that you’ll have to make good when your lease ends • You could be undermining the landlord’s attempts to lease other space in the building – not great for landlord/tenant relationships! • Remember to factor in unforeseen costs associated with sub-leasing such as legal fees, commissions to leasing agents. As always, seek professional or legal advice before making any bold changes to your lease arrangements – and keep your landlord in the loop. www.bayleys.co.nz/work place/articles/insights Maximise the return on your commercial investment At Bayleys, we believe relationships are what businesses are built on and how they succeed. Speak to our Bayleys team today. SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008 We understand that to maximise the return on your property you need: Professional property management A business partner that understands your views and goals Jan Cooney Senior Commercial Property Manager B 07 579 0609 M 027 408 9339 jan.cooney@bayleystauranga.co.nz Brodie Thomas Commercial Property Manager B 07 579 0608 M 027 746 9218 brodie.thomas@bayleystauranga.co.nz Becky Jefferson Commercial Property Management Asst. B 07 579 0614 becky.jefferson@bayleystauranga.co.nz
FROM THE GROUND UP BAY OF PLENTY BUSINESS BAY OF PLENTY NEWS BUSINESS January/February NEWS 2018 23 1 Cheal seeing a rise in the number of rural subdivisions Increased activity in the rural sector is dominating the workflow at Cheal Consultants so far this year. There has been a dramatic rise in the number of subdivisions where the overall outcome is a larger farm and less housing stock. Nick Davies, the Rotorua regional manager for Cheal, says that as a result of past subdivision rules, there are many rural parcels of the 15-30 ha size. Unless they are in a horticultural area, these parcels are not particularly useful for farming, other than for runoff. They also sometimes have dwellings which are surplus to requirements. “We are having to work hard to keep up with demand at present with a significant rise in the number of rural subdivisions in Bay of Plenty,” says Davies. Subdivision opportunities are many and varied The new District Plan in the Rotorua District carried through some of the previous rural subdivision standards, but has provided a lot more opportunities. For example, additional lifestyle lots can be created with protection of Significant Natural Areas, gullies or stream margins or when nutrient losses are to be reduced. This is also consistent with Western Bay rules. The minimum lot size for farms is dependent upon the site’s location within or outside of the Lake Rotorua catchment and the Land Use Capability of the land. Within the catchment, the minimum lot size is 15ha and on versatile soils. Outside of the catchment the minimum size is 40ha. A subdivision proposal that does not comply with the rules doesn’t mean you cannot subdivide. But it does mean it will receive more scrutiny. Rather than focusing on the numbers - for example the 40ha minimum - Cheal will also ensure that the proposal takes into account the fact that provision for social, economic and cultural well-being are key elements in the fabric of rural communities. Some farms are held in several different titles and these can be altered to provide more suitable property boundaries We are having to work hard to keep up with demand at present with a significant rise in the number of rural subdivisions in the Bay of Plenty. and exploit any lifestyle lot potential, which equates to freeing up additional capital. Succession planning Planning for family farm succession or sale can sometimes require subdivision or boundary adjustments, for example, to provide one sibling with a house while the other inherits the farm. In other cases the farmer may wish to stay in the farm house, with the balance of the farm sold to an adjoining owner. This is overly simplifying the succession process, but the possibilities of incorporating a subdivision into this process shouldn’t be overlooked as a tool to assist with equitably dividing up an estate when the time comes. Farm Houses The District Plan provides for additional dwellings for farm workers, often without the need for resource consent. The recent changes to the Resource Management Act require controlled activity resource consents - such as for some farm houses - to be processed within 10 working days instead of the standard 20 working days. While some farm houses are surplus to requirements and can be subdivided and sold off, some dairy farms require more modern accommodation to attract and retain skilled senior staff. “We are seeing a significant increase in the number of subdivisions where existing dwellings are surplus to requirements,” says Davies. “In one recent example the house was significantly over-capitalised and the owner did not want it to be used as a farm worker’s accommodation. We successfully subdivided out a lifestyle lot around the existing house which went up for sale, thus freeing up capital to construct a more suitable dwelling.” Centralising dairy operations There have also been several examples of adjoining farms in the same ownership requiring investment to upgrade the milking sheds. Rather than upgrade two or more sheds a new central location has been selected for one new shed to serve both farms. This makes sense from the economic perspective along with the environmental one and can mean a reduction in staff and housing too. Other services we offer include farm mapping, drone (UAV) surveys, water supply easements and supply auditing, and resource consents for effluent discharge and water takes. Cheal Consultants has more than 75 years of successful operation providing surveying, planning and engineering services to Bay of Plenty and Central North Island. Since opening an office in Taupo in 1940, Cheal has expanded to offices in Hamilton, Napier, Ohakune, Taumarunui and a few years ago acquired Canmap Hawley in Rotorua. Whatever your requirements are, Cheal can help. Drop into our office or call and make an appointment for us to visit you. engineers | surveyors | planners Ph: +64 7 349 8470
Page 1 and 2: Bay of plenty JANUARY/FEBRUARY 2018
Page 3 and 4: Small Business network grows Small
Page 5 and 6: What’s coming up in the workplace
Page 7 and 8: BAY OF PLENTY BUSINESS NEWS January
Page 9 and 10: You, data and business Did you know
Page 11 and 12: 11 Growing competition for sought a
Page 13 and 14: in the Bay BAY OF PLENTY BUSINESS N
Page 15 and 16: 0800 46 36 75 l info@1cr.co.nz www.
Page 21: FROM THE GROUND UP BAY OF PLENTY BU

Bay of Plenty Business News January/February 2018

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?