Property development is becoming more and more of a popular way to make a living. With an increasing number of people starting their own businesses and companies opening new bases all over the country, buying and selling or renting commercial properties is becoming an increasingly more profitable venture. If you are looking to make a good investment, buying a commercial property to rent can be one of the best choices to make. But, the work doesn’t end there – as a commercial property owner, it’s good to be prepared for everything that you’ll need to do both before and after finding a suitable tenant.
Managing your commercial property is absolutely essential to your success. Although in most cases you will be able to find a good tenant who will look after your property, it’s still important to ensure that you take care of the management side of things effectively. This can be done using a top commercial real estate software program to help you keep on top of what needs to be done. Managing your property will include tasks such as ensuring that the lease is paid on time, keeping on top of any maintenance or repair jobs, and ensuring that your tenants are satisfied.
Finding tenants for a commercial rental property can often be significantly different to finding tenants for a domestic property. When looking for tenants for a commercial property, you are advertising your space to people who either already own a business or wish to start a business in the area. In some cases, you may even be able to rent to large, global companies who want to branch out even further and open a shop or centre in the area where you have your commercial property. However, as with any kind of renting, it’s important to ensure that you sign contracts with tenants who are reliable and trustworthy. Before entering into a contract with your new tenant, it’s advisable to carry out a number of checks such as credit and background checks. In some cases, you might even ask to see a business plan to determine whether or not the tenant will be able to make the lease in the long term.
Choosing a lease plan is an important part of renting out a commercial property to a tenant. Depending on the type of tenants that you are signing a contract with, there are a range of various lease plan types which you might choose from. In some cases, you might want to take on a tenant with a ‘rolling’ style lease contact, meaning that there is no minimum term and the tenant can cancel at any time that they wish. This is often one of the best lease plans to go for if you are renting your property to a tenant who has just formed a start-up and is unsure of how successful the business is going to be. In some cases, shorter term lease contracts can work better for both yourself and your tenant as it means that the tenant can move out of the property quicker if needed and minimises hassle for yourself when it comes to chasing up rent. On the other hand, long term lets are often more ideal than shorter term rental plans for some tenants.