Waikato Business News August/September 2023

Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of cooperation.

Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of cooperation.

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10 WAIKATO BUSINESS NEWS, AUGUST/SEPTEMBER <strong>2023</strong><br />



Mike Neale, Managing Director, NAI Harcourts Hamilton<br />

New Tenant Interest?<br />

- Role of your<br />

Commercial Agent<br />

This is a leasing market where we are<br />

starting to see some warning signs<br />

– with increasing vacancy rates,<br />

Landlords are often keener to get a Tenant<br />

signed up and less reputable Tenants see<br />

this as an opportunity. For Landlords, not<br />

every not every Tenant is a good tenant<br />

and sometimes it can be best to steer clear.<br />

What are some of the warning signs?<br />

• Asking to draw up a lease offer without<br />

having seen the property<br />

• A long term lease offer at the asking<br />

rental, along with a significant rent<br />

free period<br />

• Asking for a significent cash contribution<br />

to fitout<br />

• Asking to reduce the deposit to one<br />

months rental<br />

• Asking to defer payment of the<br />

deposit<br />

• They don’t have a solicitor<br />

The downside to signing a commercial<br />

lease with a poor or undesirable<br />

tenant, has various downsides<br />

and risks for a landlord.<br />

These include:<br />

a) Non-payment of rent: Disreputable<br />

tenants may have a history of<br />

not paying their rent on time, or at<br />

all. This can result in a loss of rental<br />

income and financial/emotional<br />

strain on the property owner.<br />

b) Property damage: Problem tenants<br />

may not take good care of the<br />

property, leading to damage that<br />

can be costly to repair. They might<br />

also make unauthorized alterations<br />

to the space, which could further<br />

devalue the property.<br />

c) Legal issues: Disreputable tenants<br />

may engage in illegal activities<br />

on the premises, such<br />

as drug manufacturing<br />

or distribution, which<br />

can lead to legal troubles<br />

for the property<br />

owner. If such a<br />

tenant engages in illegal<br />

activities or causes<br />

harm to others on the<br />

property, the property<br />

owner could potentially be held<br />

liable for damages or injuries.<br />

d) Eviction difficulties: If a tenant with<br />

a bad reputation refuses to vacate<br />

the premises when the lease is terminated,<br />

it can be challenging and<br />

costly to evict them through the<br />

legal process. This can result in a<br />

prolonged vacancy period and lost<br />

rental income.<br />

e) Insurance invalidation: Unauthorized<br />

uses and alterations may invalidate<br />

your insurance policy.<br />

f) Increased management workload:<br />

Dealing with a problem tenant can<br />

be time-consuming and stressful.<br />

You may need to invest more time<br />

and resources in property management<br />

and legal proceedings.<br />

To mitigate these risks, it’s essential<br />

for landlords to conduct thorough tenant<br />

screening, including background checks<br />

and references, before entering into a lease<br />

agreement. Some of this should be undertaken<br />

initially by the Agent and some by<br />

the Landlord or their legal advisor.<br />

Additionally, having a well-drafted<br />

lease agreement that clearly outlines<br />

expectations and consequences for lease<br />

violations can help protect the landlord’s<br />

interests. Seeking legal advice or consulting<br />

with property management professionals<br />

can also provide valuable guidance in<br />

dealing with disreputable tenants and minimizing<br />

potential downsides.<br />

What should I expect from my real<br />

estate professional?<br />

While it can be a fine line between what<br />

information you can ask for and what is<br />

commercially sensitive or an over reach,<br />

the following are some items you might<br />

consider asking:<br />

• Do they own any assets, such as a<br />

house?<br />

• Can their accountant provide a<br />

statement of position?<br />

• Can they provide a rental bond or<br />

even a bank guarantee?<br />

• Could the rental be maintained 3<br />

months in advance at all times?<br />

• Does anybody in their office know<br />

of this potential tenant ? have they<br />

asked around?<br />

• Can we find out who their previous<br />

Landlord was and talk to them, or<br />

even the Landlord for where they are<br />

currently living?<br />

• Should a credit check be completed?<br />

• If they are on an overseas passport,<br />

do they have appropriate visa’s and<br />

how long do those visa’s last?<br />

I believe that a competent commercial<br />

agent should give you<br />

good advice and be able to act<br />

as a sounding board for suggestions,<br />

as how to mitigate<br />

any potential issues. As a<br />

team, we constantly strive<br />

to provide advice and solutions<br />

that mitigate risk for<br />

our clients.<br />

We had a recent case where a<br />

potential tenant enquired. Fortunately,<br />

within our office we try to keep an eye on<br />

the Public Notices in the <strong>Waikato</strong> Times<br />

and application notices for liquidation etc<br />

– in this instance, one had shown up several<br />

months priors, for the same director.<br />

A copy of the notice was provided to<br />

the potential Landlord and a face-to-face<br />

meeting set up between the two of them,<br />

which the agent also attended. The Landlord<br />

is an experienced commercial owner,<br />

so the landlord works were limited and a 3<br />

month deposit was agreed and paid before<br />

the keys were handed over. Thus, the landlord<br />

was fully informed of the risks before<br />

a decision was made and hopefully mitigating<br />

as much as possible, any risk.<br />

Under Real Estate Agents Act 2008<br />

we advise all parties that they need to<br />

seek their own legal and other professional<br />

advice before signing anything<br />

NAI Harcourts Hamilton<br />

Monarch Commercial Ltd MREINZ Licensed<br />

Agent REAA 2008<br />

Cnr Victoria & London Streets, HAMILTON<br />

07 850 5252 | hamilton@naiharcourts.co.nz<br />

www.naiharcourts.co.nz<br />

Tech Talk: User<br />

Experience and User<br />

Interface design is<br />

about more than<br />

look and feel<br />

There is a misconception that user<br />

experience (UX) and user interface<br />

(UI) design exist to make a system<br />

look and feel good.<br />

This is just scratching the<br />

surface.<br />

The role of a UX<br />

specialist is to ensure that a<br />

product goes to market with<br />

the greatest chance of success.<br />

This is made possible by working<br />

to understand the needs<br />

of a system’s users, and creating<br />

a user-friendly product<br />

that helps real people get their<br />

tasks done.<br />

When you’re going to market<br />

with a product, you need<br />

to have strong marketing and<br />

sales strategies behind it.<br />

Investing in great<br />

design means<br />

getting it right the<br />

first time.<br />

You’ll want to put extra<br />

thought into the onboarding<br />

experience and keep an eye<br />

on adoption rates and churn,<br />

you need to know exactly how<br />

many people are using your<br />

system.<br />

The development team and<br />

client need to work closely<br />

together to ensure the product<br />

achieves your sales objectives,<br />

minimises churn, and maximises<br />

adoption.<br />

But in terms of what goes<br />

into the user interface, if you're<br />

selling the product that you're<br />

building, then you probably<br />

want to think about when are<br />

the key moments in this experience<br />

that we close the deal<br />

or upsell the customer a larger<br />

plan? Thinking about where<br />

are the sales opportunities<br />

within the context of the user<br />

experience? How are we going<br />

to excite and delight, entice?<br />

Often when a product is<br />

falling short in the market,<br />

businesses will say they’re<br />

wanting to improve adoption<br />

or retention rates.<br />

When we review the user<br />

interface, we can identity UX<br />

and UI issues that are inhibiting<br />

success.<br />

Software businesses want<br />

to improve conversion, adoption<br />

and retention rates, and<br />

look to marketing and commercial.<br />

However sometimes<br />

when the stone is turned over<br />

to have a look at the product<br />

there are UX issues and opportunities<br />

missed to delight<br />

users!<br />

Investing in great design<br />

means getting it right the first<br />

time.<br />

Another way to think about<br />

it is, without investment in<br />

good design, businesses run<br />

the risk of paying the high<br />

price tag for a product that<br />

ultimately fails in the market.<br />



Briana Christey is a<br />

user interface and user<br />

experience consultant at<br />

<strong>Waikato</strong> software specialist<br />

Company-X.<br />

This can tarnish their brand<br />

reputation and puts them<br />

in a tricky decision to either<br />

cut their losses or try again<br />

by reinvesting good design,<br />

rebuilding and rebranding<br />

which can come at a very large<br />

cost.<br />

There's a well-known quote<br />

from former Jaguar chief executive<br />

Ralf Speth that summarises<br />

it well: "If you think<br />

good design is expensive, you<br />

should look at the cost of bad<br />

design."<br />

Often the problem is cluttered<br />

and confusing UI that<br />

results in a high cognitive load<br />

for the user to navigate and low<br />

overall product satisfaction.<br />

Achieving simplicity in<br />

design requires real understanding<br />

of users, so that the<br />

UI can be designed to exactly<br />

what they need, at the right<br />

time, and in the right order in<br />

their intuitive journey to complete<br />

tasks.<br />

Without a doubt, quality<br />

of design is directly related to<br />

product success in the market.

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