4 Helpful Tips For Commercial Property Landlords When Signing Lease Agreement With Tenants

If you own commercial properties, you might be contemplating renting them out. However, there are numerous considerations to take into account. As a commercial landlord, you must tackle numerous responsibilities and take risks. That's why it's imperative to get everything right from the beginning. Exercise extreme caution before signing a lease agreement with your new tenants to avert potential legal problems down the line. 

This article shares some top tips you might find helpful as a commercial property landlord and the value of seeking expert support from commercial landlord advisory services. 

Gain More Insights into the Quality of Your New Tenants

Before signing a commercial lease agreement with any tenant, conduct comprehensive research first. Get more insights into who they are, their area of specialisation and their reliability, especially in terms of rent payment and compliance with other lease requirements. 

Begin by running comprehensive background assessments on businesses and inquiring for recommendations from previous landlords. If the business is a limited client, scrutinise their accounts to determine how you might recover your money should they fail to meet the rent requirements. Furthermore, ask the tenant to furnish you with a personal rent guarantee or alternative rent deposit. 

Seek Expert Advice on Rent Charges

As a commercial property landlord, you want to be sure you're getting the most out of your investment. Before agreeing on an ideal rental cost with the tenants, it'll be wise to consult with a reputable commercial landlord advisory service first. 

For instance, a property surveyor can compare your property with other commercial properties in your location, weigh merits and demerits and provide you with an accurate rental value of your property on the market. 

Outline Lease Terms Clearly

Transparency is paramount to the success of any commercial tenancy lease. It's imperative to be as transparent as possible with your prospective tenants. Outline basic lease terms in the agreement document and ensure you are on the same page. Apart from monthly rent payments, you must consider specifying other applicable terms, including subletting, insurance cover, maintenance and service charges.

Enlist a Commercial Property Solicitor

Finally, if this is a new lease with a new tenant, it's imperative to involve a professional solicitor for legal counsel. Generally, going back on the drawing board to negotiate items that have already been documented can be challenging. However, enlisting a commercial property solicitor gives you access to legal advice regarding the lease agreement terms before signing the dotted lines. In turn, this helps alleviate potential tenancy collapse issues.

These four tips are crucial to you as a commercial property landlord when entering into lease agreements with your tenants. Consider the services of a commercial landlord advisory service provider for a smooth process. For more information, contact a company like Miles Phillips Property Consultants.