If you have a vacant commercial property, you can use it to your own benefit by leasing it out. But while doing so, special care should be taken and must be aware of how to lease commercial property.
There have been a few cases where lessors got cheated by their tenants because the terms were not clear in the agreement and tenant decided to use in his advantage.
To not let the exact thing happening with you, there are some commercial real estate leasing tips enlisted below to help you in similar conditions:
Commercial leasing tip # 1: Be ready with basic details
Before renting out, be specific regarding details like tenure for which you want to lease the property, type of agreement applicable for your need, the category of commercial tenants to whom you wish to lease out. While dealing with your client, you must be pretty clear yourself about all these things.
Commercial leasing tip # 2: Set your draft terms of the lease
Since you are the one owning the property and leasing out, set your draft terms which will act as a backup while discussing and finalising the agreement. This tip is crucial in many ways, because at a later point of the team during execution of the agreement, any difference in the interpretation from both sides may cause some friction. It would be risky to negotiate a half cooked deal with the client, so it’s always better to do your homework before any such important agreement.
Commercial leasing tip # 3: Background research of client
It is the sole responsibility of the owner or lessor to be assured of the background history of the client. You should know beforehand if the client had some tendency to commit any financial fraud with his previous associations.
The owner of commercial property which the lessee had earlier rented can provide you with the feedback of the client, if available. You may need to hire a professional third party to carry out such background checks for the safety of your commercial property.
Commercial leasing tip # 4: Make the property more appealing
Just like any other business, your property available for rent must have a fair share of appealing and presentable attributes to attract the clients. The best way for how to lease commercial property regarding this is to maintain the cleanliness and beauty of the complex even when it is lying vacant. It is not always easy to convince the client that the place will look good once it is cleaned later, it’s better to show them the property that is already in the cleaned state.
Commercial leasing tip # 5: Choose the tenant with due consideration
It may happen that you may require to immediately put the commercial property on rent due to some personal issues and urgency, but you should know how to lease commercial property to reliable parties only.
The client may be unknown to you, but must be trustworthy, have some genuine purpose of renting in and have the appropriate funds to pay the lease amount. Otherwise, you may have to chase him and add the unnecessary tension associated with renting your property.