In today’s economy companies are closing just as quickly as they are starting up. Some entrepreneurs have a successful startup company, but there are a few things they should be prepared for so they don’t hit the wall like other failing companies. A couple of things tenants might be ready for include rent increases, tenant business health, and market changes. Staying knowledgeable will prevent them from letting their businesses fall through the cracks.
According to RealtimeCampaign.com, in residential real estate, the only time a tenant is getting an upfront benefit on a lease is when it’s brand new. A renewal is always a chance to raise your rate to match market rates. As a new tenant, they might look for a move-in deal or entry fee discounts. When you are renting out a commercial unit, it’s important to consider the health of the tenant’s business before you get ready to let them sign a new lease or renew. If you’re looking to offer lease and commit to a full year of expecting regular payments, you could try here.
Tenant Business Health
A tenant’s ability to maintain paying out a consistent amount each month should always be factored before you give them a lease. If you approve them, make sure they pay on time. In commercial real estate one of the perks of negotiating a renewal will be the reflection of the previous year. If they struggled last a year and it seems their business can’t handle the stiff new rental rate, it might be time for them to move. Don’t put your building in a bind and then find yourself evicting someone. If an unfortunate situation arises, it’s good news that Nevada Legal Services offers aid to tenants facing eviction.
Sometimes the leasing market isn’t doing that well and tenants have an advantage. They’ll keep a lease, pay attention to the lease-breaking clause, and look around for a chance to save their business a little money. A struggling landlord might still charge high rent, but the tenant will have more power to negotiate at places where the occupancy is low. A good way to remain aware of where the great deals are is to remain in contact with your leasing agent. If you need help finding a tenant for your quality space just contact someone like Thomas Mensendiek for your real estate needs.
Moving is a hassle regardless of if you’re going from your home to an office or to another building. The best thing you can do for your real estate business is to fully evaluate your tenant prior to offering a lease on your office space. Once you’ve evaluated your potential tenant and you believe it’s worth it to offer up a lease, then go forward. In the meantime, stay aware of potential rent increases, tenant business health, and market changes.