Investing in commercial real estate is increasingly becoming a viable option for investors all over the world. There can be only one reason to own a commercial property- to make money out of it! After you have acquired a commercial property, the tricky part is to rent it out. Commercial properties are a little complicated compared to residential properties, one needs to have a thorough understanding of every aspect of leasing a commercial property right from finding a tenant, till signing the contract. Here are a few guidelines as to how to go by the process of leasing your commercial property successfully:
Draft an action plan
Leasing a commercial property will require a little bit of effort from your side and it will definitely not happen overnight, hence it is important to map out an action plan as to how you plan on proceeding with this.
Renovating your property
Make sure your commercial property is presentable to attract tenants. Make necessary repairs and check if everything is in good condition in order to get a good price for your property.
Pricing your commercial property
Know the worth of your commercial property and make sure that you are not asking too much or too less. Consider the market value of your property by evaluating similar properties in the same area.
Invest in good photography
It is important to present your commercial property in an appealing manner for it to attract as many tenants possible to get a good deal. Therefore, invest in good photography to get some good quality photos of your commercial property for effective advertisement.
Finding a suitable tenant
Advertise your property where you will be able to attract tenants who are willing to pay a good price for your commercial property. It can be a daunting task to find a suitable tenant for your property, but with effective advertising you can manage to get it right.
Seek professional help
You might be intimidated by the numerous options available as to how and where to advertise your commercial property for sale. Therefore, it is advisable to seek assistance from a commercial real estate broker to get the best possible deal. A broker can also help you to screen through the tenants to choose a suitable one.
Setting out your lease terms
You should determine the terms of your property usage and decide what clauses need to be added in the contract. State clearly the tenant’s obligations including your expectations regarding payment, any unacceptable activities, environmental disturbances, maintenance and so on.
Signing the contract
Hire a lawyer to prepare your lease documentation based on the terms and conditions on which you and the tenant have mutually agreed upon. Review the terms carefully and make them clear with the tenant too before signing the dotted line.