Something I’ve always wanted to do is invest in property as a business investment because the income potential is incredible. I know a lot of people choose to invest in property to rent out as a domestic home, but I’ve always thought that the potential is much higher with business premises. I know a lot of people who rent property to tenants and have great success with it, but I’ve always fantasised about buying a business premises and renting it out, and that’s what I plan on doing.
Of course, if I were to invest in property to let as a business premises, I would ensure that I took the time to think every little detail through. Far too many people rush into buying property for rental potential and fail to think about everything that’s involved in becoming a landlord – whether that’s a domestic or commercial one. However, it’s crucial that you take the time to think carefully about what’s involved and get to grips with what you need to do to stay within the law.
Don’t worry; I’ve done my research, and I’ve got you covered. Have a read of the below tips and advice, and you can make buying property to lease much easier and less stressful.
Pick a property that has rental potential
Obviously, one of the most important things when selecting a property to lease to businesses is to ensure it has the potential to be successful. Don’t just select a property because it’s cheap; there’s a lot more that needs to be taken into account. Look at the location of the property – is it in a good location for businesses? Consider the cost of your mortgage and how much the rent will need to be to cover it and give you an income. Decide whether the premises is a good size or whether it’s too small to offer an appealing space. It’s important to be practical and objective, to ensure that you find that ideal building.
Invest in the property and make it an appealing space
Once you have found that perfect place, the next step is to work out how to go about making it an appealing place for business owners. It may be that the premises is already well designed and decorated, or you may want to revamp it. Or, if you plan on giving the tenants free reign to do what they want with the space, you may be considering leaving it as it is. Work out which route you want to go down and what type of landlord you want to be.
A lease is a must
The biggest mistake that you can ever make as a landlord is failing to have a lease in place. It’s also crucial to ensure that the lease that you have in place covers everything that it should do, that’s why you should use an experienced lawyer. If you need to find experienced commercial property law solicitors you can visit BHP Law’s site to get an idea of prices. It doesn’t matter about the cost if you are going to let your property out you need to ensure that you have a professional lease in place that protects you and your tenants.
Be on hand at all times
As the landlord, it will be your responsibility to deal with any issues within the building, from leaks to peeling paint. So you need to be willing to be on hand at all times to deal with problems as and when they occur. Or, if you don’t want to deal with these types of issues yourself, you will need to hire someone who can.
So there you have it, everything that you need to know about buying a commercial property and leasing it as a business premises.