When it comes to a lease agreement for commercial purposes, it’s important to know the value of your asset so that both parties get a good and fair deal. That said, it’s also worthwhile to think about how to maintain and manage the space beforehand so that it appeals to more businesses. This will allow you to offer the space to a more diverse audience.
Sometimes, getting a better deal for your leasing agreement means balancing value and profit. After all, sometimes charging the highest rent you can is not always the pinnacle of value to gain from a commercial occupier.
After all, reliability, responsiveness, and transparency are all essential values to consider as a landlord.
In this post, we’ll discuss how to achieve a more equitable deal. After all, you’re running a business too, so making sure you approach a deal from all angles makes good commercial sense.
Understand the Value Of Your Property
Having a quality appraised is an essential first step. It will enable you to utilize the best lease accounting software with accuracy, ensuring all the variables and figures are up to date. This will enable you to extend the current and potential value of the real estate, while also considering the long-term accountancy maintenance you will need in order to keep and sustain a commercial tenant. These management tools are worth their weight in gold.
Consider The Value Of A Tenant
The amount you can charge a potential tenant is important to think about, of course, but it’s also essential to recognize that a long-term contract with a quality tenant is even more valuable. This way, you can ensure that such a tenant is durable, committed, will keep to the agreed-upon payment schedule, and as they grow will work with you on negotiating a new and fair lease. For some of this you will have to use your best judgment, but remember that profits are not the main metric you should be chasing.
Scrutinize Your Agreement
It’s good to thoroughly scrutinize your agreement. Doing this will provide you the ability to agree upon essential terms, such as making sure that contracts are renewed in advance, that industrial or commercial processes do not interfere with the integrity of the property, or that continual renting of parking spaces is a permanent stipulation in the contract.
Read it over thoroughly with a competent legal professional at your side. Highlight mandatory terms in the contact as part of unapproved action or causing trouble in terms of reputational damage. This way, you can protect yourself from all angles and so can the tenants.
After reading this advice, we believe you’ll get a more equitable deal from your lease agreement, and hopefully find your real estate investment both lucrative and equitable for all parties.