Tenants are one of the most important aspects you’ll need to consider when investing in commercial property. When you make the right choices with regards to choosing commercial tenants, you are securing a long term income and boosting the potential of your property investment. So obviously, it’s important to find the perfect tenants for your commercial property. Here are 8 aspects you will need to consider.
Find the right kind of business
Determine which kinds of businesses are popular and important in the local area and choose the types of business you want to work with based on this. This means that when your first set of tenants eventually leave, you can tell other, similar businesses that your property has suited companies in their field well.
Look at other properties
Research all of the buildings in the area surrounding your commercial investment, particularly the buildings with quality tenants. You may find that some of these tenants are looking to relocate or move due to pressures of expansion or contraction. Over time, you can form strong relationships with businesses by boosting your industry knowledge.
Look at other tenants
Work your way through the streets which make up your property location, as this will help you understand exactly where the tenants are and what they think when it comes to property occupancy. Some tenants will have issues with rental costs or with their landlord, meaning they will have plenty of reasons to relocate, so make an effort to stay in contact with them. Also, learn about all the necessary services a tenant may need to relocate so that you can help them if they decide to rent your commercial property. The additional services may include movers, vehicles like motorcycle transport interstate, house realtor, etc. If you can provide all the essential information to the probable tenant, it may help you in increasing your business.
Most people, while buying or looking to rent a new home, they might ask around in their inner circle or take matters into their own hands and use the internet as a medium to search for results. They might simply type in “Fairhope Living options” or something similar and get in touch with the required agencies based on their results. Similarly, advertising your property to the ones in need will always require an upfront cost, but the benefits can be plentiful if you choose the right medium. Find whichever method works best for finding tenants for your property (we’ve mentioned some of them below) and be sure to track the results so you can see which advertisements are getting you the best results.
Use direct mail
The world might have gone digital, but on a local scale, Direct Mail advertising is still extremely effective. Unlike simply shouting about your property on social media, printed marketing has the potential to reach straight through the front door of prospective tenants. Talk about the listings you have today and the vacancies which are up for negotiation.
Phoning, emailing and good old fashioned door knocking
Calling and emailing can also help you build a database of people who might be interested in your property down the line, if not now. You can also move through the local streets to visit businesses in person and understand what their needs are with regards to their work environment. Create conversations and keep a hold of the connections you make.
Once you have good tenants, hold on to them
If you do manage to find the perfect business to set up shop in your commercial property, do everything you can to keep a hold of their lease. This includes creating a space which can be adapted and changed to fit how their business might change, accommodating for the introduction of new team members or equipment.
Make sure you invest in the right property
Of course, arguably the most important factor in finding the right tenants is making sure you have invested in the right commercial property. Take your time and do your research when looking for an investment opportunity, exploring factors like location and budget thoroughly. If you find a great opportunity but aren’t in the position to buy outright, commercial bridging loans from companies like Glenhawk can get you the support you need quickly. This means you never have to miss out on a potential investment.