You have a property that you’d like to lease out. It’s a commercial property, and it has many rooms and areas that would be great for offices, small businesses and other kinds of arrangements. You seek a tenant or tenants who are good for business.
You want to make the most of your commercial space, but what can you do to ensure you’re coming out on top? How can you find the right tenants?
Remember, tenants want to be attracted to the space
Leasing comes with negotiations. Your tenant may come to you with several requests, such as having utilities included in the rental cost each month or asking for specific parking spaces to be marked for their business. As a landlord, it’s up to you to decide if their tenancy is worth the extra expense. You may determine that it is so long as they sign a longer lease, for example. Consider offering some basics that other commercial properties don’t, like referral bonuses or discounts for paying on time each month, and you may see an increase in tenants who pay on time and bring you the business you want.
What if a tenant wants more than you’re offering?
Many tenants want to ask for more than you’re offering in the hope that they will get more out of you. You need to be firm in what you absolutely cannot offer, but that doesn’t mean you can’t hold one or two amenities or options aside to sweeten a deal. For example, if you have a $1,500-per-month potential tenant who isn’t sure about renting due to the addition of internet fees, it might be worth adding the line for them. Similarly, if you have a potential long-term tenant who doesn’t want to have the responsibility of paying utilities, you might consider adding a small fee onto their rental agreement each month instead of making them set utilities up in their name.
How can you be sure that this tenant is going to be a good fit for your space?
You need to do your due diligence. You should always run background checks, for example. If this is a business, then they should be registered. You can look online at reviews about the business in general, but if the tenant has past experience renting, you should reach out to those landlords. This will give you a better idea of what the person is like over time and if they’re going to be a good fit. Remember, you can reject an application if you don’t feel the individual is a good fit for the space or that they are a higher-risk tenant.
As a landlord, you’re in control. This is your property, and you have the final say.