Does your commercial building sit vacant because you know longer need it for your business? Rather than owning an empty building that is doing you no good, consider allowing someone to rent it out for their business. Before becoming a landlord, there are several things that you must know to ensure that things are done right. Speaking to a real estate attorney is one of the things that you should consider for covering the legal aspects of becoming a landlord. Take a look at this article for general information that will be handy as you begin renting out your commercial building.
Ensure that the Building is in Good Shape
Before finding a tenant, walk through your building to find out if any repairs are needed. Even if there are problems that potential tenants won't notice when viewing the building, you should get them fixed. The reason why is because once the building is rented out, the tenant will likely notice the problems that were hidden during the viewing. You will be responsible for making repairs that are not the tenants fault no matter when the problems are found.
Carefully Screen Every Potential Tenant
Don't make a big mistake by not digging into the background of each applicant. Learn which applicant has the highest potential of paying rent on time and taking care of your property. There are companies that can run thorough background checks on each applicant, and the process is usually fast. Choosing the wrong tenant can lead to a substantial amount of property damage being done.
Get Legal Documents for Tenants to Sign
A lease will be the most important document that you can possess when a tenant is found for your building. The lease will basically cover you when it comes to the legal aspect of being a landlord. For example, if your tenant threatens to sue you for raising the rent, a lease can prevent it from happening if the lease allows you to raise the rent at will. The document will also cover all of the terms that you want your tenant to follow in order to avoid getting evicted.
Be Firm with Making Tenants Follow Rules
It is wise to make sure that your tenants follow rules, even something as minor as not leaving trash on the landscape for a long time. If you are not firm about making tenants follow rules, your property can lose curb appeal, rental payments might be late, and numerous other things can happen. If you notice any rules being broken, issue prompt warnings to give your tenant a chance to correct the problem. You will have the legal right to end the lease if a tenant doesn't cooperate.