1. Get familiar with local property laws
If you’re relatively new to the commercial property game - or if you’ve purchased a property in a different area - it’s essential you have a good knowledge of local property laws to ensure you know what your rights are and what your tenants are entitled to.
Before you put the property up for lease, work with your lawyer to identify any rules and regulations that may impact the way you lease out the property or the type of business that can occupy your space.
2. Screen your tenants
Making sure that the tenants who lease your property will be able to meet their rental payments - as well as any additional costs such as maintenance or repairs that fall under their obligation - is an important factor in a successful tenancy.
It’s well worth taking the additional time required to adequately screen potential tenants and conduct all the necessary background checks to assess their suitability. Having the right tenant in place won’t only protect your income stream - it will provide you with much-needed peace of mind that your asset is in safe hands.
3. Don’t play the guessing game when it comes to rent
While you might be inclined to do a quick search of comparable properties in your area to decide on what rent to charge, it’s advisable to consult a property expert to ensure you’re asking for the optimal market rate.
This can help to avoid pitfalls on either end of the spectrum - either setting the rent too low and getting less than what the property’s worth, or setting it too high and failing to secure a tenant, resulting in a long listing time followed by a rental reduction, which can be off-putting for potential tenants.
4. Consider a break clause
With a lot of uncertainty in the market resulting from the COVID-19 pandemic, many businesses will be hesitant to commit to a long term lease on a commercial property without the safety of knowing they can exit the agreement should their circumstances change.
While a break clause is not ideal for landlords, it may benefit you in the long-term by helping you attract tenants in the difficult market conditions we’re currently facing. By building potential rental losses into your pricing and offering incentives for long-term adherence to the lease, a break clause could ultimately pay off.
5. Choose the right landlord insurance
Just as every business is different, so too are their insurance needs. Selecting suitable landlord insurance is an essential way to protect yourself against disaster - but the key is to choose a policy that covers you for the things that matter most to your business, while ensuring you’re not paying for aspects you’ll never use.
Landlord insurance can cover a wide variety of different scenarios, ranging from theft and loss of rent to specific coverage such as glass or machinery breakdown. Compare a range of different policies so you can select the one that aligns best with your business needs.
If you’re a property owner or manager, claim your listing now and discover the advantage of comprehensive property analytics.