When people think of becoming landlords, they often think about renting our apartment building. This is mainly because it is easier to invest in residential properties. Economically though, investing in commercial properties is a better option.
Successful businesses can pay more than a dozen tenants and are often willing to do so as long as they keep their profitable spot. If you are thinking of investing in and renting out commercial properties, here are some things to keep in mind:
Choose the Right Property
Investing in the right commercial property is the beginning of your career as a commercial landlord. The key thing is the location. Depending on the sort of tenant you want, you need to pick out the right place to buy and develop. There are a wide variety of commercial properties out there.
For example, if you want to rent out to people who need storage, then a big warehouse in an accessible place can be a great investment. But if you want to rent to shops and retailers, then a small corner location can be as good.
Be Aware of Your Responsibilities
With you as the owner of the property, you should then focus on your responsibilities. For one, you need to provide the basic utilities for your tenants. This means water, electricity, and gas. You should also work on ensuring that the property is safe and suitable for tenants.
For example, if you bought an old property, it is your job to check if there is asbestos in the walls or lead plumbing. Bring in inspectors to ensure that your property is ready for tenancy. You should also get certifications for this to show to your potential tenants.
Get Some Legal Help
As a landlord, you need a solid lease contract. Besides that, you need to be aware of your legal obligations to your tenants. It is a good idea to look for assistance from one of the reputable legal solicitors in London and other urban areas. For one, they can help you clear up all the legal parts of your dealing with your tenants. This includes the leases, lease renewals, and more. A clear lease is necessary if you don’t want your tenant to start demanding things you can’t provide.
Ready Your Insurance
Protecting your investment is very important, which is why investing in insurance is a necessary expense. You should get the usual list of insurance packages that should protect your property from the usual natural and man-made threats out there like fires, floods, and more. You should also get liability insurance to protect you in case your tenant alleges that you failed your responsibilities and they want compensation.
Renting out commercial property can provide you with a very profitable revenue stream. It is not as easy or simple as it sounds though. The tips above should help guide you through many of the pitfalls of being a commercial landlord. But don’t forget to be realistic about the market and be patient. Renting out property is about long-term profits over short-term gain so keep your eye on the prize and you’ll find yourself owning a profitable location.