Five Tips For Successfully Leasing Out Your Commercial Property
Often you come across blogs about commercial property leases that are targeted towards the potential tenant, such as ‘how to negotiate your lease’, or ‘what you should do when you have a problem with your lease’. Rarely do you read articles aimed at the property owner, or something that first time owners of commercial property might actually benefit from. So to address this imbalance, here are some helpful tips to successfully lease out your commercial property.
Establish the conditions of the lease
This should be one of the very first things you do, and will protect you as the property owner in the event of a dispute with the tenant either in the execution of the lease or during the term of the lease. That said, having the commercial terms drawn up in a Heads of Agreement and the lease documents prepared by an experienced commercial property solicitor like lawyer Glenn Duker and signed off by both parties, it should prevent a dispute from occurring at all.
Highlight the obligations of the tenant
Clarifying just what is expected of the tenant in the lease agreement is important, helping to ensure that everyone knows where they stand from the outset. We suggest that both parties keep the lines of communication open in the early stages of the landlord / tenant lease relationship.
Obtain the necessary approvals before work starts on the premises
Whether the tenant has leased your property to use as offices, retail space or another purpose, if there are going to be contractors working on the premises to fit out the space (and it’s highly likely there will be), it’s important to get the requisite approvals from the relevant governmental bodies. An expert on commercial leases like Glenn Duker will be able to assist and point you in the right direction on these matters.
Appoint a property manager with experience
Trust us – an excellent, highly experienced property manager will make your life a lot easier. They can become the main point of contact for landlord and tenant, and will ensure the property is maintained and always in capable hands.
Conduct inspection of the building and all mechanical services prior to formalisation of lease
As the owner of the building it’s highly recommended that you carry out a pre-lease building inspection. Make detailed notes about the condition of the premises. Take photos of potential ‘red flag’ areas if necessary. Ensure all mechanical services like air conditioners, service lifts and telecommunications have current service orders in place and that any relevant electrical equipment has been tagged and tested. All these measures will protect both you and your tenant.
If you’re considering leasing out your commercial property in Melbourne, be sure to speak to an experienced commercial lease specialist like Glenn Duker, solicitor. He can provide you with the necessary legal advice to ensure you enjoy a successful property lease experience.
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