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As a commercial landlord, you will face a unique set of challenges and tenant issues. Yes, you still need to vet tenants, just like a residential landlord would. However, commercial tenants want and need different things, and so being a commercial landlord differs in many ways. With that being said, read on to discover some important tips for commercial landlords.
Be aware of legal changes – There is only one place to begin, and this is with the law! There is no denying the fact that the law changes all of the time, and so if you are not careful you could end up falling foul of it without even realising it. This is why you need to make a dedicated effort to staying up to date with property investment news and all regulations concerning commercial landlords. You need to turn it into a hobby!
Think long-term – You need to consider the full picture when you are renting out a property. Is this something you are going to do on a consistent basis? Or, do you think you will use the property yourself at a certain point? You need to outline your goals and objectives so that you can make sure your plan falls in line with this.
Management services – In addition to the points that have been mentioned so far, you should also make the most of commercial strata management services. This means that a professional business will be assigned to take care of a wide range of matters. This includes everything from payment of accounts to monthly and annual reports. This makes it much easier to manage your commercial property, which is especially important if you have numerous properties or this is one of a number of businesses you have.
Insurance – It is also important to make sure that you have the correct insurance in place, as well as making it a requirement for your tenant to have insurance in place too. In most cases, the tenant’s personal property will not be insured by you for any damages or loss. Make sure you outline this in the tenancy agreement. You should also specify what insurance policies you are going to maintain, and what insurance policies the tenant needs to cover.
Add a subletting clause – Finally, if you want to make sure your tenant does not assign lease to another party or sublet a commercial unit without your authorisation, you should make sure you put a subletting and assignment clause in your lease agreement. This will outline the restrictions the tenant has on occupancy.
So there you have it: some important advice to keep in mind as a commercial tenant. If you follow the tips that have been presented in this blog post, you can give yourself the best chance of a hassle-free and profitable experience as a commercial landlord. Good luck!
