Almost all of us invest for commercial properties for the sake of making money either by selling or by renting it out. Many of the owners prefer to earn monthly income by facilitating the property to others on rental basis. The amount received as rent is just like a monthly pension for them.
Those wishing to rent out commercial properties should consider the following:
- Set a reasonable rent – Many people make the mistake of setting the rent too high or too low. It is certain that you won’t gain anything by doing so. It is recommended that other property owners should be consulted about the market rent for your commercial space that is to be rented out. All aspects related to the lease deed should be studied well. Many owners while putting their commercial property for rent prefer full-service leases wherein all expenses including utilities etc. are covered in the rent. However the same are paid by the tenants in many cases. Time period for the leases also varies as few agreements last for one or two years while many tenants prefer longer terms for the same.
- Location – Commercial spaces located in good-looking and easily approachable areas always attract more potential tenants. The appeals of any property falling in centralized locations can be enhanced by making improvements to its exteriors. The tenants always like to take possession of the commercial properties that can be approached in easy manners.
- Hire a professional – Hiring the services of a professional can be of great worth in making maximum money by renting out the commercial property. Prominent commercial real estate agents equipped with tenant contacts, databases and other agent relationships are quite helpful in making the properties to be rented out against fabulous rates.
- Choose the right broker – Professional guys acting as brokers are able to determine the right rental rates and lease terms in respect of the commercial property for rent. The tenant broker usually acts as representatives with the exclusive rights for showing your property. Availing the services of commercial real estate brokers requires you to shell out certain amount as their commission that is based on certain percentage of the lease. It is wise to allow a reasonable amount of commission to them so that they take full interest for the assigned task.
- Study the commercial real estate lease – It is recommended that the deed for the commercial property for rent must be studied well before signing the same. Many of the commercial leases are not standardized as certain clauses can be negotiated. Better study them or show the same to the lawyer that may make you understand its version in plain language.
- Increase in the rent – Those renting out their commercial properties would like to increase the rent after certain time periods, say after every one year. This should be clarified in the rent deed that they sign by taking into confidence the tenant that should also agree and sign the document. Services of lawyer may be taken in this regard.
The property owners and the tenants can be at great ease by going through the above simple points that prove their worth for easy-going of the rent deeds.