Commercial Property Guide & Tips
Getting ready to rent a commercial property can be daunting, yet rewarding financially. For the most part a well drafted lease agreement will deal with almost every potential problem that will arise during a commercial tenancy. In some countries it is standard that guarantees are provided by directors of corporate tenants which can reduce the risk for lost rent or damage. What is unusual about retail and commercial leases is in some countries it would be rare that quarterly or half-yearly inspections occurred unlike in residential tenancies. There is risk associated from not inspecting the premises at least every 6 months to ensure that the premises are being maintained.
Below are some questions you will need to consider when renting out a commercial property:
1. How much will the rent be and when will it be paid (i.e. fortnightly, monthly or perhaps annually);
2. What type of tenant is suitable for the premises?
3. Will I require directors guarantees?
4. What will the length of the lease term be?
5. Am I prepared to offer a rent free period or some other incentive to attract a good tenant?
6. What are the minimum requirements that a potential tenant will need to possess (i.e previous tenancy history)
7. Will I include utilities in the rent?