If you are new to investing in commercial property, make sure you do your research to ensure you know what your expectations and requirements are to being a commercial property landlord.
Below are some pointers when it comes to deciding what commercial property to invest in.
Choose The Right Type Of Building To Invest In
There are three main types of commercial property, retail, industrial, and office. Each has its own benefits, where you would find retail space achieves higher yields, however, you might find office tenants tend to stay in their premises longer in general than owners of retail businesses offering greater security to investors. Industrial properties are in high demand and are becoming increasingly popular among investors. Each has its own benefits so it pays to do your research on that particular property and the use of the premises.
The Type Of Tenancy
Good to know the background of your tenancy or potential tenant. Just like residential you want to ensure those leasing your premises will be good tenants.
Landlord Responsibilities
Knowing your responsibilities of being a commercial landlord. The main responsibilities of a commercial Landlord is to ensure the building is kept to a certain standard throughout the lease and to ensure the conditions of the lease are adhered to. The tenant is responsible for the safety and maintenance of any fixtures and fittings they have installed as a part of their fit-out and this should be clear in the lease.
When Your Tenant Vacates
Your tenant has provided their notice to vacate, and you are now in a situation where your investment property will become vacant.
- Conduct an inspection of the premises and determine what the tenant will remove as part of the de-fit and make good of the space
- Engage a professional real estate agent to oversee the leasing of the premises
First National Neilson Partners are well versed in leasing and management and would welcome the opportunity to assist you in leasing your retail, commercial or industrial properties. Our process includes inspection of the premises, to provide you with an honest and educated opinion of current market value, and the best marketing strategies to entice prospective tenants. A typical marketing package involves online advertising to the major platforms such as Real Commercial and Commercial Real Estate, and some form of street-front advertising such as window stickers or a leasing board.
Enquiries are reviewed on a case-by-case basis, typically resulting in a thorough onsite inspection. During that period, discussions are held to determine the type of business the prospective tenant wishes to run from the premises and its suitability to the site. Moving forward if the interested party qualifies and wishes to make a formal application, they are provided with the appropriate documents for that process.
We take pride in our processing strategies and are known for the care and diligence applied to the risk assessment of every applicant. In every case, an application is subject to appropriate credit checks, agent and business verifications, personal and accounting references. We also carefully review all supporting documentation, to enable us to clearly determine compatibility with the premises and owner-based criteria. Only then can we approach our investors with a level of comfort regarding the applicants ability to perform in accordance with the lease. Moving forward, when an applicant is approved to lease the property, we can prepare all legal and required documentation on your behalf. Alternatively, you may engage your solicitor if that is your preference.
We hope this brief summary provides you with some insight prior to investing in commercial property. The key point here is to do your research. It is always best to seek independent legal advice before you sign on the dotted line.
For more information please do not hesitate to contact First National Commercial Neilson Partners on 9705 4888.
