Putting your property on rent for monthly earning is the right way to earn money without losing the ownership. These kinds of investment help you to earn good profits. But the questions that pop in the minds of owners are – whether to give the property to residential renters or commercial renters. Well, you can take advice from commercial property valuers their extensive knowledge can help you to make the right choice. You have heard a lot about the advantages of having residential tenants today in this blog post we are disclosing the advantages of renting your property to commercial tenants.
Benefits of renting property to businesses or for a commercial purpose –
1. Huge rental amounts – It’s a quite well-known fact that money earned through commercial renting is far higher than residential renting. As the commercial properties are used for businesses or to make profits thus the rent of commercial properties are high as a comparison to residential property. Commercial lease means rent goes high upon every year by a pre-decided percentage. Paying the utility bills is the responsibility of the commercial tenants.
2. No maintenance worries – Common area maintenance is owned by the commercial tenants only. Being a commercial property owner you don’t have to worry about building maintenance at all. Even in some cases where the property sizes are large commercial tenants have to pay the rents and all expenses like real estate taxes, property insurance, and all building maintenance cost. Whereas in case of having residential tenants, the landlord or owner has to bear the other extra expenses like this. So renting your property for commercial purpose is a boon.
3. Improvements done by the tenants – As commercial units are used to run the businesses. So it completely depends on tenants how they want to convert the place. For running a restaurant to fully furnished office tenant have to design, renovate, construct the place as they want to like – painting, furniture, flooring, lighting and so on. A commercial tenant is responsible for bearing these expenses. Well, the owner can also contribute to the renovation but it can affect the rental amount. Moreover, it depends upon the commercial property owner and renter.
But if we talk about residential properties that it doesn’t need many changes.
4. No need no find tenants every time – Finding a good tenant is a tedious and tough task. In commercial renting you can get rid of this issue. As you don’t have to find the tenants every year. As commercial renters look for the place where they can settle down to run their business and the renters don’t want to shift their business location every year. First, they look for the place which is serving their needs and then only they took it for commercial purpose aiming to be there for a long time. Thus the owner doesn’t need to worry about finding new tenants as leasing period of tenants go years and years and every year based on the contract with rental value increases. That is a sure shot advantage to the commercial property owners.
These are the benefits of having a commercial tenant. You can hire our commercial property valuers and residential property valuers for guidance.