Occupiers gave an average satisfaction level of 4.9 out 10, but on the whole, tenants in smaller properties tend to be the most dissatisfied.
Tenants are happiest with rent review terms and condition negotiations and this area also showed the best level of improvement, perhaps reflecting the positive impact of the Code for Leasing Business Premises, with a quarter saying the renewal process has eased over the last 12 months.
The survey showed high environmental awareness from tenants, with almost half of those surveyed saying sustainability, or environmentally friendly changes to the home are more important now than a year ago. Just 35% of those polled are satisfied with their landlords on this issue. This may also point to opposing views on how to approach the issue and how to apportion the costs, according to the survey.
Cost continues to be an issue for tenants, in particular in relation to service charges. Of those polled, 19 per cent of occupiers feel service charge arrangements have worsened over the last 12 months and as in the 2009 survey, there are a number of areas where occupiers would like to see increased transparency on costs and better communication.
The application for consent process appears to be an ongoing problem area for many occupiers with 29 per cent believing the process has become worse or much worse in the past year. Similarly, 44 per cent of occupiers claim they have to wait more than four weeks to receive a response to an initial application, with a further 31 per cent waiting more than 12 weeks to receive a decision.
Overall, relationships between landlords and occupiers remain stable with 81 per cent of survey respondents saying their relationship is about the same with their landlord as it was 12 months ago. However, small businesses remain the least satisfied across the board, indicating there is still work to be done in the sector.
John Story, chairman of the Steering Group that produced the survey, said: “The results show that many appear to be benefiting from increased flexibility over lease events. This may be a reflection of current market conditions, as landlords become increasingly responsive to the difficult trading conditions facing their tenants. This is positive news for the industry but will it endure when the market strengthens? There is still much work to do in other areas to improve landlord and tenant relationships.”
He added that environmental issues remain key for many tenants and said there still needs to be more clarity and a greater willingness to work in partnership.
“In these difficult economic times will occupiers be willing to pay for green buildings? Certainly, more creative engagement between the parties could help to ascertain exactly what it is that each wants when it comes to sustainable buildings,” said Story.
