As a landlord, you should be informed about the laws that apply to commercial leasing. You should be prepared for the time it will take to move in tenants and for time that may pass without tenants in your building.
Not planning for the time it takes to lease out a property or to move people in or out can make the situation problematic for you. Here’s what you should consider as you begin leasing out property.
- Always leave more time than you think you need to move in (or out) tenants
Some people get into commercial real estate leasing and believe that deals are easy to get done. The reality is that it isn’t always that simple. It could take a few months to negotiate a deal. It could also take several months for a business to move into the space and open its doors. Similarly, if you want a business to move out, you need to remember how long it could take for them to clear the space.
- Your lease should be long enough to encourage growth in the space
Another thing to consider is making the lease long enough to encourage any tenant to grow their business there. Commercial leases tend to range from one to 10 years. It might be challenging to find a tenant willing to try the space for a decade, but the length of the lease will determine how long you have that space filled. Since it can be tough to find new tenants in some cases, consider opting for longer-term leases.
- Make sure the lease is binding for the length of its terms
Finally, before signing any documents to allow a tenant into your space, make sure your contract is reviewed by a professional who understands laws and contracts. You need to know that your contract is legally binding and that it will provide protections to you throughout the full length of its terms.
These are three reasons to leave more time than you expect when you start leasing commercial spaces. Rushing could mean that you make mistakes that hurt your bottom line.
