There are scores of ways to make money from commercial property these days. Some people “flip” them – they buy them, renovate them, and then sell them for a profit. Others prefer to keep them for a few years and lease them out.
The latter option is a long-term investment strategy that often reaps higher rewards. Especially in a property market that is trending upwards. Are you considering renting out offices to other people from buildings that you own? If so, today’s handy guide is for you!
Let’s face it. The world of commercial property investment can sometimes be confusing. Especially if you intend to lease out offices in a building to other people. Here’s how to achieve a profitable and worthwhile outcome:
Get the building inspected. Once you buy an office building, the first thing you should do is get it inspected. First of all, you want to check that the structure of it is sound. Second, you ensure that the electrical, gas and water supplies are functioning well. And, third, you can guarantee that it won’t burn down if a fire occurred!
If you have to borrow money to buy the building, it’s likely those checks will be mandatory. But, even if you pay for it using your own cash, you should still get them done. If there are any issues, you can use that information to negotiate a lower price.
Refurbish the interior. If you’re going to lease an office out to someone, it must be ready for them to use. That means they can move straight in without doing any major renovation work.
I recommend opting for a contemporary and modern look to your office spaces. Doing so means tenants can style their offices according to their needs. Plus, it keeps renovation costs down from your point of view.
Provide a maintenance service as standard. When you offer serviced offices to your clients, there’s one thing you always need to do. And that is to ensure everything is working at all times!
Your agreement with tenants should include a maintenance service as standard. For example, let’s say they report a problem with the dishwasher in their kitchen. Your contract with them should include provision for dishwasher engineer services.
Of course, if they damaged the appliance themselves, they can pay for the repairs. But, if it is faulty, you should foot the bill for it. Your maintenance service should cover electrics and plumbing as a bare minimum.
Install structured cabling before tenants move into your offices. Part of the appeal of serviced offices is tenants can go online and create a LAN in minutes. They don’t have to run patch cables across their floors. Nor do they have to invest in Internet connectivity. You should provide all of that as standard.
You can also negotiate a deal with a telecom provider for your tenants. That way, you can provide an all-encompassing service to them.
Mia Guerra
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