Real Estate Archive

How to Lease a Commercial Property – Your Questions Answered

Ever wondered how to lease a commercial property? Well, the time may come when you find yourself in a position to do so. You may have bought or acquired a property that is commercial, or is zoned commercially. Elapsing commercial property can be a huge money maker for you, especially if you lease a property in an area that is already designated as a commercial zone. People will pay a lot of money for location and convenience, as well as the license to trade out of certain buildings. You can most definitely use this to your advantage. However, before you go ahead and rent your property out, there are a few rules that you need to understand and follow. There is a specific process to leasing a commercial property.The rules of the gameWhen your tenant signs a lease agreement, you need to make it understood that they are committing to paying rent and other expenses on the building. They also need to understand the length of time that they are bound to the lease for and how that will affect their ability to move or change. Any lease agreement that you give a potential tenant needs to be legally binding and also needs to have been drawn up by a lawyer just to make sure that neither party is liable in the event of something going wrong.If you are looking to rent out your property for commercial purposes, you need to make sure that it is zoned correctly as well. You cannot operate a commercial property in a non-commercial zone. Once you have gotten all the necessary permits, you can then start to look for and secure tenants for your building. Part of the beauty of leasing commercial properties is that you can make your tenants stay in your building for a long time. Commercial lease agreements work on the basis of the fact that the tenant has to stay in the building for the period of the lease. They may not leave and must keep paying rent until the lease term is up. This means that you have a guaranteed source of income as the lessor.Curious as to whether the tenant pays rates and taxes or can later the premises? The tenant does pay rates and taxes themselves, so these are no longer your concern. The tenant must also obtain permission from you to alter the building, and all alterations must be overseen by them.