There has been plenty in the news over the past few years about the rising house prices and how buying to rent residential property offers excellent investment opportunities at the moment. While that is true, it’s not the only property that is worth investing in to make a profit.
For both business and individuals, investing in commercial property to rent out to companies offers a number of advantages. You get capital growth and income return from investing in commercial property in the UK, whether purchasing shops, industrial or other retail buildings. There are a few important things to consider before investing however.
One of the main advantages of commercial over residential property is that the renting party usually want to take out longer leases. There is less faffing around trying to get in new tenants every six or twelve months, which can happen when renting out a house or flat.
With commercial property, tenants usually want to take out much longer leases, lasting anywhere from five to ten years. You will have to decide how long you want to set leases for any property you purchase, and how attractive it will make the property to potential renting businesses.
Depending on your budget you may be able to afford anything from just one office to a full block. After working out how much you are willing to spend consider other details, such as the property’s location, nearby transport links and amenities.
You may find cheap deals on certain shops, offices or retail opportunities, but be sure to check their history. It may be that they are in a notoriously hard to sell area where many businesses fail, making it hard to find renters. Look into the facilities on site and see if there are any major selling points that will make it appealing to renters.
Property Management Firms
It can take up a lot of time being in charge of commercial properties, especially if you are a business with other interests to take care of. One option is to use a property management firm such as GVA Worldwide to look after your commercial property assets.
They will look after the day to day management of your buildings and ensure that all landlord and tenant legal responsibilities are met. This can save a lot of time and help ensure that you are fully covered and acting in the proper and legal way at all times.