Things to Consider When Letting Commercial Property

Many landlords stick exclusively to letting residential property, particularly those who are new to it, however there is a lot of money to be made by letting commercial property providing you go about it in the right way.

To help you get started with letting commercial property below are some of the biggest things you need to consider.

Getting the right property

  • Type of property – The first thing you need to decide when looking for a commercial property to invest in is the type of building you’re looking for. A lot of people instantly think of office buildings when they think commercial property but there are many other types of property you can get. Smaller commercial buildings that can be used by shop or restaurant owners can be a very wise investment, particularly if they’re in a good location.
  • Size – The size of the property is obviously a big consideration. Generally the larger the property is the more you can expect to pay. A multi-story office building will obviously require a more substantial investment then a smaller building on a single floor.
  • Location – A good location is vital when investing in commercial property. You need to do as much research as possible and find out what the tenant demand for different types of property is in that particular area. Commercial property can be a big money sink if you’re not able to secure tenants quickly.

Your responsibilities as a commercial landlord

  • Health and safety – As a commercial landlord it’s your responsibility to ensure any property you let out is safe. Things like asbestos, fire safety and repairs to the building are all things you need to take responsibility for.
  • Gas and electricity – Gas and electrical safety are your responsibility as a commercial landlord too. You will need to have both gas and electric regularly inspected by qualified engineers on a regular basis in order to ensure the building is safe. As far as electrical or gas appliances go – they would be the responsibility of the tenant.
  • Maintenance – You will need to make sure the building is properly maintained too. This means if there is any damage to the structure of the building then it falls on you to ensure it’s repaired.
  • Fixtures and fittings – Fixtures and fittings can be a tricky area when it comes to commercial property. Any fittings that were already installed when you let out the property will generally be your responsibility whereas those that the tenant fitted after will be theirs. It’s a good idea to make it clear upfront exactly what is your responsibility and what isn’t in the lease.