Whether buying, selling, renting or letting, here are a few tips that may come in handy as you commence your journey in the commercial sector as a budding entrpreneur...
Commercial property transcends a range of asset types/sectors such as retail, industrail and land development. Each sector can be subject to nuanced external market trends and conditions, therefore it should not be considered a "one-size-fits-all" venture.
When buying to let, consider whether the property is likely to attract tenants paying the rent that will cover your expenses AND produce a worthwhile profit?
If you are buying to develop, do your homework and to find out if there are planned proposals nearby that would have an effect on your investment, or if there are any local authority affordable home quotas that need to be met.
The terms of occupational leases can have a difect impact upon the value of yor property. Such clauses need to be studied carefully such as the frequency of rent reviews and how they are assessed and service charge provisions can have a significant bearing on your investment moving forward.
It is usually a given that a commercial premises has the correct planning use for the purpose it is being used for but it is always worth checking! Restrictions on the scope of use and change of use are always something to consider when going for a commercial premises.
If you are planning to become the landlord of commercial property that is occupied by two or more tenants, I cannot stress further the importance of competent management. Before you decide to take on such a responsibilty, ensure you are well-equipped to deal with increased responsibility of issues such as the management of common parts, internal/external work, servic charge allocation etc. that comes with owning such a property, or appoint a managing agent to do so.
