Owning commercial space can be an exciting and rewarding business venture, but leasing it out isn’t exactly a walk in the park. For one, you should know how to deal with your prospective tenants and settle all the legal aspects of your lease contracts if you want to be successful in your venture. Here are some tips you should try out.
Screen Your Investors
Make sure to do a background check on anyone you want to lease out space to. Confirm their reliability in delivering payment and their plan to use your space. Haphazardly getting tenants or investors without checking their credentials first could end up in disaster quite quickly. Opt to streamline things through a written application.
Get Everything in Writing
Prepare a contract for your investors to sign and make sure to keep it as comprehensive as you can. This should include payment terms, building use, and limitations. You should also consider including details like entry provisions, as well as maintenance or repairs.
Success or Failure Rate
Unless you’re restricting your choice of investors or tenants in one type of business, you might want to check which businesses gets to rent space in your building. Consider the various rates of failures of establishments in your area and opt for those that are relatively more successful.