4 tips to help avoid the empty commercial property nest:
The worst case scenario for a commercial property investor is an empty building. No tenants means no rent, which means no debt reduction and still needing to service the Bank loan could leave you in a very difficult financial position, not to mention the stress. Here are some useful tips to help keep your investment tenanted and ensure it maintains it value when it comes time to sell.
Keep in touch
Maintaining a good relationship with your tenants will ensure you are the first to know if there are any problems, if something needs fixing and if they are considering leaving the premises. If the tenant has had a change in circumstances and needs to terminate the tenancy, then finding out early will help you to advertise early for new tenants. Ion the other hand, if they are unhappy with the building, you can’t fix anything if you don’t know and if you don’t respond quickly you risk making your tenant unhappy.
Keeping it in good condition
Try to stay on top of maintenance and repairs. This not only keeps your tenants happy, it also keeps your property in great condition – so you can preempt and avoid bigger problems and increase its value for sale. Talking to your tenants and choosing a great property manager will help in this respect.
Consider longer leases
Commercial leases are generally longer than residential leases, for good reason. The cost of having an empty commercial property is greater than for a residential property. Therefore, when you are negating the lease, if you are happy with the terms, consider a longer lease term - and factor in regular rent reviews to ensure the rent keeps up with market value.
Advertise well
Advertise widely and take great photos. A picture really does speak a thousand words think about what’s in the picture and the light levels. A dark, gloomy, sparse space doesn’t look particularly attractive. So open the blinds and turn on the lights – it will make a huge difference. Advertising online is an effective and economical way to reach a large audience, and the more views you get online will translate to more views in real life.
List your commercial property here and get in touch you want more advice on how to word your ad.
There can be valid reasons for keeping and property vacant, for example, if you think it could sell for a higher price without a tenant in place. In this instance, be sure to protect your property from vandalism and theft, and double check your insurance still has you covered if the property is empty.
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