Are you on the edge of signing a commercial lease agreement for your retail space, office building or any other commercial property? Here are a few things which you need to consider before you sign a commercial lease.
A commercial lease can be a complex decision to make due to the risks associated with it. To take complete charge of your commercial investment which is going to be at stake and start reaping huge financial benefits, here are some things you need to keep in mind:
As you start out, you need to thoroughly assess yourself to answer the following questions concerning your property lease:
- Is my property suitable to be leased?
- How long will I lease my property for?
- How much am I going to charge?
- What kind of lease contract do I need?
- What kind of assistance will I be needing?
Seek professional help
There are many matters which need to be looked into when you are leasing your commercial property, hence it is best to seek guidance from a commercial broker who can assist you through the process. Here are a few advantages of using a commercial broker:
- They can help you find suitable tenants because of their extensive network
- They can help you to market your property through the right medium effectively
- With their market knowledge, they can help you to determine the lease
- They can guide you through the negotiation process and can help you with ther paperwork too.
Set out the 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.
Gather your documents
Buyers are extra cautious when looking for a commercial property, hence keep your documents ready to be presented when enquired about. Gathering your documents beforehand will save your time and help you to hasten up the process.
Make necessary repairs
As you are waiting for the perfect offer, make sure that your commercial property is presentable and worth the asking price. Make any repairs which may have an impact on the price that you are asking.
Take good quality photos
It is important to present your commercial property in an appealing manner for it to attract as many tenants possible. Try to take good quality photographs for effective marketing.
Find a suitable tenant
Create a list of potential tenants you wish to target. Conduct a meeting to discuss your lease terms and state tenant obligations. A broker can also help you to screen through the tenants and find the right one.
Learn to recognize a good deal
Know the worth of your commercial property and make sure that you are not asking too much or too less.
Prepare 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.