Commercial real estate in Milnerton as an investment can provide great returns, but it can also cause some serious headaches if you do not do your homework and go into the deal with your eyes wide open. Commercial property can include residential multiplexes and apartment complexes as well as more traditional business and warehouse buildings. Whether you are buying commercial real estate for profit or simply to house your own company, before you buy you should do all you can to avoid the following common pitfalls.
Have a Thorough Title Search of [tag]
Before making any commercial real estate lease, whether it is residential or commercial it is essential to get a complete title search to identify any liens or other problems with the title. The [tag] is basically the history of the deed changing hands and whether or not there are any unresolved claims to the deed by previous lenders or contractors.
Renting a warehouse (or a portion of a warehouse) on a contract basis may be the best choice for your storage needs. Contract warehouses are perfect for storing large items or a considerable number of items, especially those that will need to be protected. Normal storage facilities can’t offer the protection and the amount of space that a warehouse can provide. You can rent warehouse space or commercial property for short-term storage needs, or for long-term storage and distribution.
Renting warehouse space on a short-term basis is perfect for when you are trying to get your small business off the ground. You know you’ll need a place to store and distribute items, and using your basement or garage just isn’t going to cut it. A small business won’t need the vast amount of space of an entire warehouse, and conversely, will need more space than what a household garage can provide.
How Do you Select the Best Commercial Property for in Milnerton?
Trying to understand commercial property lease terms can seem like navigating a mine field - there is plenty of new terminology and industry jargon to comprehend. When it comes to negotiating, some landlords may try to pass off a lease document as "a standard lease" that all tenants must sign. In many instances, unknowledgeable tenants could end up agreeing to terms that are less than favourable - which are in fact not standard policy. Be wary of the following clauses:
- Early Termination - this clause often allows landlords to terminate the lease early and reasons for the early termination may or may not be given. Resist the inclusion of such clauses in your negotiations.
- Default - be wary of onerous clauses that allow a landlord to evict a tenant if the rent has not been paid within a week of the due date. While it may seem standard, it is more typical for leases to stipulate written notice be given to tenants at least 14 days before any consequences are enacted. Negotiate for required written notice in the case of default.
- Redevelopment - try to avoid redevelopment clauses that allow a landlord to terminate the lease in order to redevelop or renovate the premises.
- Indemnity - be aware of indemnity clauses that indemnify the landlord against claims for loss or accidental damage by the landlord. Be sure to check your insurance policy to see if an indemnity clause on your commercial property could violate your policy.
- Handover dates - the handover date is the date the premises are turned over to the tenant to begin the installation of fit-outs, before the fixed commencement date of the lease. Avoid leases that allow a landlord to alter the handover date without compensation - as you could find yourself incurring substantial costs if you are delayed or caught unprepared for fit-out construction.
- Make good - a make good clause generally requires the tenant to leave the premises in good condition upon departure. This usually includes the removal of any fit-outs that were installed by the tenant during the term. If your premises come installed with fit-outs, negotiate to alter the "make good" clause to a general expectation to leave the premises in good condition and repair.
There are plenty of other clauses and terms that can be negotiated - from who is responsible for whose legal fees as well as any upkeep, repair and maintenance costs. Many businesses will find that they have much more success negotiating lease terms to help reduce their costs rather than trying to get a landlord to come down on price. A tenant broker service can help with the lease "legalese" - they'll help you get a better understanding of what your options are.
Where Can You Compare Commercial Investment Properties to Lease?
Looking for the right rental property is a rite of passage for many businesses. Most discover that they can save time and capital by warehouse renting rather than purchasing their building. However, selecting the best site for a rental can be a difficult decision. More than one business has found itself stuck with steep fees and inadequate space because they didn't ask the right questions first. But finding the perfect warehouse space to rent doesn't have to be a painful experience. Read on for more details...
The first step before even starting to browse the available units is to know what you need. How are you going to use this space? Do you just need a big, empty room. Will the landlord pay for the utilities? If you are doing work in the warehouse, you'll want to look at electrical outlets, restrooms and the ability to maintain a constant temperature.
Finally, when choosing the right warehouse space for rent., always insure your equipment or any goods that will be stored at the location. In case of a fire or other disaster, your landlord's insurance is not going to cover your items, so you will need to purchase your own rental insurance. Not only do you need insurance for your inventory, invest in a good liability policy in case a worker is injured on the site.
By using these simple tips, you can find the right rental property. Carefully, read the contract provisions and then sign on the dotted line. Congratulations on taking your business to the next level with your new business space!
Finding the Right Warehouse Space to Rent
To sell or lease a commercial property as a real estate agent you have to tap into the target market and do it well. This says that you have to understand that target market in your location before you start the process of promotion. To define a target market is sometimes hard given the relative property.
Ask yourself these questions:
- What media will reach the target market in a direct and sustained way?
- What is the best time to promote the property to the target market?
- What is the capability of the target market to act and purchase the property at the moment?
- Why would the target market buy or lease such a property now or at any future time?
The internet today is playing a significant part in the promotion of property. It is cheaper but available to all in most marketing campaigns. It has a sustained promotional life and has the ability to capture enquiry for many weeks.
When the enquiry starts to come in, it should be captured and categorised. The value of a great database of buyers, sellers, landlords, and tenants is high in the operation of a real estate office. The more people you know the better the listings and enquiry will be. This is where a team of good salespeople all running an accurate database of well qualified prospects can make a significant difference in the market place.
Business Properties Do Milnerton PromotionS