Although the economic downturn hasn’t been kind to many, rock bottom property prices have presented an opportunity for many people to buy houses and office blocks with the intentions of becoming a landlord.
However, being a landlord isn’t as simple as many people think. There are many things you need to deal with. Here are some of the top tips to follow when you plan on becoming a commercial landlord:
Think about the property
When you’re buying a property there are many things you will need to consider – mainly the space that’s available and the location of the building. Generally, the bigger the space available the more money you will be able to charge your tenants per month and if this is close to a city centre or business hub then you’ll reap the rewards. If you are buying a building in order to develop it, then ensure your plans open up lots of useable space and create a pleasant, safe environment.
It’s a long term game
Letting commercial properties is a more long-term game than its residential counterpart, so you may find that offering longer business leases is a great way to get more loyal tenants. This may mean that you charge them less per calendar month to rent the property, but it will save you money in the long run as you won’t have to replace the tenants every year or so. Ensure that you have a policy about giving notice before they plan on vacating the premises, so that you’re given time to find someone to fill the void.
Getting the best finance
As a landlord, having the best possible finance package can have a huge impact, as the mortgage will have a huge impact on the rent you need to charge. In order to get the best possible rates you should contact a commercial mortgage broker who will be able to secure a finance package to suit your needs.
Keep up with legal requirements
Before you let out the property, you need to make sure that you’re complying with all the legal requirements described by the Code for Leasing Business Premises in England and Wales. This helps to not only protect the tenants but gives you a checklist for drawing up terms of contract for leasing the property. Following all the legal requirements will give you an excellent standing as a landlord and can enhance your rights.
Willing to adjust
Businesses fluctuate all the time, which can impact on the space they require. If you are able to reduce or increase the space the business requires in relatively short amounts of times then you may see huge benefits. Targeting SMEs specifically is a great way to fill your commercial properties with paying tenants that could expand to fill out the property. It could be that once you’ve found a company to fill the space they will be there until you decide to sell the building.
Commercial Finance For You 