Despite the turbulent economic climate, there are many business opportunities in today’s property market to take advantage of, such as becoming a commercial landlord. Becoming a commercial landlord can simply mean letting out residential properties but more often than not commercial landlords also let out commercial or business properties either alongside or in addition to their residential portfolio.
So if you are currently a residential landlord who is looking to branch out and get your foot in the door with commercial properties then you’ve come to the right place, because this is Commercial Landlord 101.
Wise First Moves
It is often recommended that if you are dipping your toes into commercial properties for the first time that a mixed use premises offer a good first property. This is because it is almost always possible to let out the residential accommodation fairly quickly. Then in the worst case scenario where the commercial part of the premises remains unoccupied for a period of time, the income from the residential part of the property should see you through. Do make sure that you inform your tenants that the business part of the property will also be rented out and if you know as what then let them know to make sure that they are happy living alongside this.
Things to Bear in Mind
There are additional costs to research with regards commercial properties that perhaps you won’t be aware of even if you are a successful residential buy to let landlord who is starting to get a bit more adventurous. For example if a commercial property is empty then you pay empty business rates on the property which can eat into or even totally eliminate any profits from residential incomes. There are many more things to find out too including legalities and landlord responsibilities so do your research before even considering buying anywhere; A great place to start is a targeted and current website or blog such as Property News.
Choices
As with residential lettings you will need to decide if you are going to let your commercial property furnished or unfurnished. Unfurnished and the property is not limited in its use as a space but potential tenants might have trouble seeing the potential. Furnished properties are targeted at specific businesses with companies such as David Phillips offering commercial landlords a full assembly and installation service on various specialist furniture packages.