When you first think of becoming a landlord, you might think of owning a house or perhaps two, or maybe even an apartment block. You’ll think, in other words, of being a domestic or private landlord. However, it might be better for you financially, at the very least, to become a commercial landlord instead. If that sounds appealing once you’ve done your research, it’s a good idea to know some important essentials before you get started so that you can be as successful in this endeavor as possible. We’ve listed some of those essentials below.
Choose The Right Property
Choosing the right property might seem like an obvious first step, but it’s easy to get carried away and not know as much as you might need to when choosing somewhere to rent out on a commercial basis.
The main thing to think about first is the type of building you want. Do you want to rent out office space or a retail store? Perhaps you would prefer storage, so you’ll need to find a warehouse to buy. Once you know this, you can ensure the location is right – retail units need to be in busy places, whereas warehouses can be in more quiet areas as long as there is good access and that it is secure.
If you think carefully about what the ‘right property’ means for you and your future plans, everything else will happen a lot more easily.
Consider Your Finances
Although it’s not always the case, and it will depend a lot on the factors we mentioned above, such as location as well as the size of the building, it’s often true that buying commercial property is more expensive than buying domestic property. For a would-be commercial landlord, this can be a problem.
This is why you need to ensure you are fully aware of your finances and that you know you can not only pay for the building initially, but that you can keep up with repairs and maintenance too. This is all part of your responsibility to your tenants when you are a commercial landlord.
If you’re lacking the funds to get started, speaking to a commercial bridge loan company is a great start. They will be able to help you if you are selling one property to pay for another, for example – their funding will speed up the process. However you start, though, you must have a solid business plan to help you finance the venture.
Get Legal Advice
As a private landlord, there are many different legal nuances you should be aware of. As a commercial landlord, there is even more to think about. There are many safety features you will need to have in place, for example and, of course, your lease contracts must be fair to both the landlord and the tenant.
This is why getting legal advice is a good idea. This will mean you don’t have to write your contracts yourself and can instead get professionals to do it. Plus, if there is ever a legal problem, you will have someone to turn to for advice.