Commercial Property: What to Consider Before Leasing
Leasing commercial property can be a very beneficial business venture, but there are a lot of aspects for owners to be aware of both before and during the leasing process. Plenty of these elements change regularly, so it can be helpful to do your research and organize your findings in a way that’s most helpful to you. Here are several things to consider before leasing your property.
Tax codes can change yearly and influence several different areas of your leasing practices. You may want to implement rising taxes into your rent, or consult a tax professional before purchasing related assets. Zoning laws change regularly as well, and can be a deciding factor for potential tenants. In order to avoid unnecessary fees, stay up to date on changes and make sure your tenants are also aware.
When considering the value of your property, evaluate it honestly so you can determine whether or not the property will suit the needs of the tenants you want. If you’re looking for a high price, potential businesses will probably be looking for certain technology requirements like Wi-Fi. If your commercial property can’t provide basic business needs, you may want to assess what it will take to upgrade the technology in your building.
You may already have an idea of your potential tenants, so it can be helpful to make a list of all the benefits of your property. Let them know if there’s room to expand, lots of traffic to the area, and reasonable fees for utilities. In return, you might ask for their financial history to determine the health of their business. A company with poor cash flow might struggle to pay rent, which could be a headache you’re not interested in dealing with.
How invested are you in managing your properties and observing the businesses of your tenants? If you don’t want to be responsible for building upkeep, repairs, rent collection, or monitoring the financial situations of your tenants, consider hiring a manager to do all of those things for you. A property manager may be able to keep up with all the different business tasks and tenant communication better than you can.
As with a lot of businesses, leasing a commercial property often involves a lot of moving parts. If you keep up to date with the laws in your area, secure the right tenants and are able to communicate with them regularly, you should be able to lease your property with confidence.