>> Jan 5, 2017
Every business owner knows how important securing the right location is for their business. They want to make sure that the commercial space they lease will be a good choice for their business, as it will play a vital role in getting them noticed by new customers and frequented by loyalists. As a real estate agent, you have to make sure you are able to produce a real estate lease agreement properly. This means that it should be completed in due time and every revision is finished so that a deal can be closed.
If you are new to commercial real estate properties, here are the things you need to do to help out your clients find a location to rent out:
If the business owner came to you looking for some advice on which addresses would be good for his business, it is your job as the real estate agent to give them some options to consider. You will have to factor in how much money they are willing to spend for the property so that you can find him a number of options to go through. Apart from giving him the price of the commercial real estate property, you also have to let him know whether or not there will be increases in the rent every year he chooses to renew his lease. This way, they will be aware of this and not be surprised of any additional fees he will have to pay when they decides to continue their lease.
As a real estate agent, you also have to let your clients know of any costs that may not be included in the lease. This is because there are commercial real estate properties wherein tenants are still responsible to take care of maintenance of the common areas in the property. Make sure you point out each of these costs upfront so that if there are any negotiations needed to be done, it can be done before the deal is closed.
Length of the Lease
Usually, commercial real estate leases have a term of one or two years. There is also an option to renew the lease, depending on the business owner's decision. The good thing about a one year term is that it does not necessarily tie in the business owner to the property for such a long time. And if they decide to renew their lease, they can choose to do so; especially if the location turned out to be favorable for their business. There are, however, businesses wherein location security plays an important factor on the success of the business. In such cases, the business owner may negotiate a longer term for the contract.
Exemptions or Favorable Clauses
Since your client will be signing a contract with the owner of the property, you have to make sure that they are fully aware of all the things in the contract they are about to sign. At the same time, you also have to discuss whether or not there are some favorable clauses that they may be entitled to. Make sure you check with the property owner to see if they permit subleasing the commercial real estate property. This is especially helpful in the event your client decides to close their business or relocate to another address.
At the same time, you have to make sure you discuss with the property owner of any potential improvements that may be done to the property. This includes repainting the walls, installing fixtures and even putting up any signages. By knowing these things, you'll be able to provide the right information that your potential client needs.
Once the agreement has been prepared, you have to make sure you check out everything to verify that the information includes all the things that were agreed upon prior to signing the contract. You have to treat the agreement as if it was your own, so you can also safeguard the interests of your customer. This will help you build a relationship with your customers so that they know they can trust you for any future commercial real estate property they need to lease.
Always see to it that you provide all the necessary information a potential renter needs before they make a decision on whether or not they should rent the property. In doing so, you'll be able to make the process of renting a commercial real estate property easier for your clients.
Written by the experts at Columbia Real Estate, the most knowledgeable agents for real estate in Columbia, MO.