Things To Know Before You Rent Out Your Commercial Property
Are you the owner of a commercial property and wish to list your commercial real estate for rent?
Finding the right tenant and the right rental rate can be a little intimidating. Before renting, it is important to be cautious and consult a realtor who can guide you through the ins and the outs and assist you through the entire leasing procedure
There are certain aspects of the decision that needs to be looked into in a lot of detail.
What to know before renting a property?
Before listing your commercial real estate for rent, here are important things to keep in mind.
Market research:
Gather all the required information about the commercial real estate market. Also, research about the similar commercial properties like yours in the same area and find out the rental rate of those properties. Without market research, it isn’t possible to set the right rate for your space. An under-priced space won’t make you any profit, and an overpriced space won’t bring in tenants. Therefore, it is important that you research well and rate. Rental rates in Austin vary according to the type of business and the area.
For example – if you are a warehouse owner, gather information from other warehouse owners on how much rent they are charging per square foot. If you are an office owner, gather information on how much offices lease for.
Advertising your property:
With the help of a realtor, you can advertise your property on their website and online advertising portals. This in turn will make the tenant hunting procedure easier.
Searching for a suitable Tenant:
One of the major steps that need to be taken to make the whole investment idea financially viable is looking for the right tenant. It is good if a person is already in touch with some reliable prospective tenant. But, if you don’t know anyone who would like to occupy your property, it is wise to seek the help of a real estate agent.
Make sure to do a complete background check of the tenant. Gather information about the business of the tenant. Tenants should have a well performing business with a healthy income.
Lease:
Proper terms of the lease should be decided and a legal binding document should be prepared which will be signed by you and your tenant. In that case, a lawyer should be hired. Its main purpose is to keep a record of the terms of the lease which both the parties have agreed. After signing, no alterations can be made.
Tax Situation:
Tax payment is mandatory. So the income from the rent is also taxable. If the upfront for the rent is done, then a tax should be paid on the gross rental amount. With the changing tax code every year, it is important to stay updated on your tax situation and make sure that all the taxes are paid.
Improvising property infrastructure:
A good-looking space always attracts tenants more easily, so you must keep your commercial space in good condition. This will also increase its appeal.
If there are any repairs in the property, for example- broken windows or leakage in the pipeline, it should be repaired before handing over the property to the tenant. Periodic checks need to be done. Contract lease should also mention the bearer of the maintenance cost.
Hiring a professional:
Entire process can be made simpler by hiring a realtor. A real estate agent has the access to databases, prospect tenants and other important contacts that can ease up the leasing process. They also have an extensive knowledge of the real estate market and the data that they possess includes all the suitable information that fulfils the criteria of their clients. They will also guide us in setting up the right rental rate for the property.
Commercial real estate Austin Realtors are skilled negotiators as they have years of negotiation experience under their belts. They know what normally works and what does not.
Realtors have been working in the industry for several years and so they are acquainted with the best marketing strategies that will help you market your property well and attract quality tenant.
Conclusion:
Before finalising on the tenant and the lease, be sure to consider the above mentioned points. Approach a real estate agency that will help you get the best deal and provide value through the entire commercial real estate spectrum.
Are you planning to rent out your commercial property in Austin? If yes, get in touch with GW Partners the best commercial real estate firm in austin. With a team of well qualified experts, we ensure to deliver quality services to our clients and will assist you in every step so that you have a hassle-free renting experience.