For any investment you make, getting value for money is a must. You don’t want to buy a new property, only for it to depreciate in value in a matter of weeks. Commercial properties – shops, offices, warehouses. pubs and hotels – are no exception, so it pays to look after them and market them to would-be tenants in the best way possible.
Firstly, you need to consider what property you want or can afford to buy. Check your bank balance and, if you can, talk to your bank and ask for their advice. Then, you will know what properties are affordable. Then, you can begin the long search for that money-making property!
The next step is to choose what property you would like to buy and its location. Remember that demand for commercial properties varies regionally. The most recent survey from RICS found that although demand rose in the final quarter of 2016 UK-wide, it fell slightly in London.
How Much?
Booking a viewing will involve getting a valuation. A commercial property valuation from GVA Grimley will give you an accurate figure. Getting a valuation is essential so that you know what you’re able to afford and how much you can rent your property out for, if you fancy doing so to get the most for your money.
After buying the property, the next step involves preparing it for rent. Contact a surveyor and a registered building firm to see what, if anything, needs fixing. Then, go about renovating it and, by the end of the whole process, your property will be ready to rent.
Available for Rent
When putting it up for rent, try to make your new commercial property look as presentable as possible, and hiring a property manager can be a good idea to get you started. Make sure the walls, windows, roof and doors are as clean as can be, whilst any garden or parking area should be equally well-kept. Then, figure out who to market it to.
At the moment, the people most likely to rent are those who don’t have the means to buy their own properties outright. Small businesses, particularly those in the retail and leisure sectors, are worth pitching your new property to.
Once you have found a tenant, make sure you ask them to:
- Keep the property tidy – this makes it easier for you to rent it out to new tenants
- Make sure they have all the relevant paperwork – trading licenses, for example
- Pay their rent on time – check that they have the money to pay you
If your property is large enough, consider splitting it up into units. For storage or small shops, this is ideal. You will, however, need to ask your local council for planning permission.