Renting Commercial Property

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Renting Commercial Property

When renting industrial property, you need to know your skill and what you no longer can do with the property. Business property is usually office space or warehousing and safe-keeping. Renting commercial property such as an office or even a storefront may require some remodeling if it will not meet your needs, you can go over this with the home owner, who usually concurs as long as it provides value to the property.

Just as with renting a house, apartment or a mobile home, you will have a hire to sign, together with rules and regulations specifically designed to protect the property, property owner and you as the tenant. The healthiness of the property will be noted and you must abandon the property in the exact same condition or far better when vacating the property. Renting an apartment and a commercial property are different as to the condition, in the event you rent a stockroom, you might not realize that support into a supporting column at a high speed as well as leaving a mark or some evidence of the mishap can be considered damage.

Things that take place in commercial building might be accidental or unavoidable, but you can be kept liable for the damage. You need to discuss all aspects regarding renting commercial house before you move into that. Because of the damage term being so basic in a commercial rental, you need to document each little detail right down to the condition of the floor. If you notice lift truck skid represents, you need to document this particular before you start using the constructing.

When you vacate the premises, you can do a walk through with the property owner to explain any problems he or she may have in regards to the condition. If almost all goes well, you will have a security downpayment returned to you with 30 days. If there are virtually any discrepancies, you can then think back at the lease contract with the noted problems that already get out of to see if they are without a doubt new damages or even older damages done before you rented the property. This is why it is so important to keep proper documentation as to prior damages before renting.

Commercial properties are easier to rent than say a home or an apartment. They are usually found everywhere and property owners need to load the vacancies. However, you still need to guard yourself. Not many offices are going to need a lot of work to accommodate you, but when you do need to make a few additions, you should talk to the property owner just before doing any of this work. You should also find out if training regimen more telephone outlines if needed and maybe a few partitions if that is the way your office needs to be.

Invest the the time to look for the right place to rent, you will notice that there are some nice commercial spaces with some affordable rent prices. It is possible to sign yearly leases or may even a couple or three yr lease depending on your profession and need.

Comments: 32

  1. Shalon February 2, 2013 at 1:18 pm Reply

    Could it be simply because they think I am leasing them out? What’s the reasoning behind it? I’ve four houses in various states, but they are all mine, with my own possessions, etc. Can anybody shed some light about this?

    The homes have been in Kentucky, Rhode Island, New York, and Florida. The main one I am at most is within Florida. And perhaps I ought to explain that they’re really small houses, just large enough for me personally (one sleeping rooms, small kitchen areas, etc).

  2. Weldon March 2, 2013 at 3:16 am Reply

    Hi All!
    Could anyone advise on how to write an offer to lease a commercial property? Is there any samples that I can use to write one?
    Thanks for help!

  3. Catarina March 13, 2013 at 1:23 am Reply

    My family owns properties in Honolulu and rents them out. My mom makes around 5,000 a month so 12x a year. I am not sure how much she can claim for depreciation because 1 is a house the other is a commercial property leased by a small business. Lets just say she makes 60,000 rent income a year. Is she taxed specially 15% or is she taxed 25% from the federal income tax bracket?

  4. Vance March 13, 2013 at 11:47 am Reply

    They all seem the same : the same shops, the same layout, everythng. Whatever happened to independent traders and why are these fairing better in other countries? Is it really a case of greedy landlords (mainly the big pension companies that have commercial properties as investments) charging the highest rents they can get away with, meaning only the big name companies can afford to be in city centres?

  5. Danial March 18, 2013 at 5:00 am Reply

    on dec. 12 of 2006 an auto accident damaged the outside of the commercial property that i rent. a portion of the building was damaged that supports my picture window. as of now, it hasn’t been repaired. how long does he have to fix this? my window is boarded up and it’s been an eyesore. he seems to be slow dragging to me. what are my options?

  6. Shelba May 30, 2013 at 10:49 am Reply

    I want to rent a commercial property and the landlord is wanting me to call 1-800-852-9212 to “activate my credit report.” Is this legit? I’ve rented places before and the landlord did their own thing with the background check. I never had to activate anything.
    I should also mention that this landlord has already requested my SS#, a copy of my driver’s license, and a letter that authorizes him to perform a credit/background check. If he has the info, why does he need me to do it?

  7. Lavern June 2, 2013 at 7:44 pm Reply

    I have a retail commercial property. It has 3 store fronts and all three are rented out. I was wondering if I can make extra payments from my personal income toward the property’s mortgage and use the interest paid toward lowering my taxable income on my personal income?

  8. Nickolas July 9, 2013 at 1:23 pm Reply

    I would like to know if it is legal, or typical, to renovate commercial property that you rent, not own.

  9. Alfredo July 28, 2013 at 11:15 pm Reply

    I’m renting a commercial building where I recently enabled a disabled motion detector security system. I pay the monthly fees for the system. I can think of some good reasons to give the renter the code to disable the system but I would like to know if by law he would have the right to request it from me since I don’t actually own the building.

  10. Jordon July 30, 2013 at 3:46 am Reply

    I am small business owner and had a month by month lease agreement with my landlord. When I terminated my lease on August 30, 2006, I gave him 30-day and he rented the property out 3 days later and gave the new tenant the key immediately. The landlord did not charge rent to the new tenant during the first month. Instead the landlord holds my security deposit (about $1400).

    Shall the landlord refund my deposit? If yes, is it too late to go too Small Claim Court after New Year? Thanks for answer.

  11. Kip August 15, 2013 at 3:58 am Reply

    I am interested in renting vacant property to build a paintball course on. It doesn’t have to be right in town. What about with a small storefront?

  12. Luis October 24, 2013 at 1:15 am Reply

    There is a Canadian lender which is willing to makes loan for my commercial property but I wonder if they can do that without US license?

  13. Mariann November 19, 2013 at 5:20 pm Reply

    I own a commercial property and part of it I am renting to a tenant plus utilities, the tenant came today and told he me will not pay rent anymore and that he will stay there until the courts tell him to get out and he said that will take 6 months. I’m in Arizona. As a commercial landlord can I just change the locks? I already have access to the utilities which I am going to be shutting off tomorrow so if that doesn’t wake him up then I have to do something else. If I cannot just change the locks what are my next steps. Please help collecting rent is my livelihood. Thanks,
    There is no written lease. So this would be a month to month verbal agreement.

  14. Dell December 13, 2013 at 10:23 pm Reply

    I’m trying to start up a laser tag business and need to find a great location in my area. What’s the best way to go about finding properties to lease for comercial usage.

  15. Johnnie December 23, 2013 at 4:53 am Reply

    As a commercial property search website http://www.commercialroute.com , we are keen to find out what Yahoo users think of the current market conditions and whether there is a market revitalisation on the horizon?

    Has the market bottomed out yet? Or is the downturn set to continue?

  16. Bettina December 27, 2013 at 10:32 pm Reply

    That is so inefficient and it interferes with the market. I got an idea. Why not charge property taxes based on the amount of land you own? (By the square foot)

    That way people can fix their homes without worrying about taxes going up. Some people may decide to turn their property into rentals which will bring the rents down naturally rather than unnaturally (rent control).

    If the property taxes are based by the square footage of land some people may decide to turn their properties into commercial property. That way they use their property in the most efficient way possible. If there is a need for this or that you can bet that someone will use their property for it. Those with vacant land will have to develop it or pay the same taxes as those who do.

    You don’t even need tax assessors. Oh I forgot the tax assessors are probably going to hate me for this suggestion lol.
    BTW

    A similar thing can be done with patents. Charge fees for each and every patent based on how far and wide they cover the market. That way they either use it to its fullest extent or pay taxes for sitting on it.
    @Go with the flow- You can make exemptions for farmers.

    Remember property taxes are charges locally not federally.
    For instance Farmers can pay Federal taxes instead of local taxes. Then the Government can give money to the local towns for what it costs to keep them there. We all need food so when it comes to farming you don’t want to mess with that.
    @sadcat- Well maybe that sog should be used for something better. If it isn’t usable then it could become public property. Turn it into a park or something.
    @magic- Why should I have to pay taxes for someone who doesn’t use his property?
    @magic- See if you are not using your property then someone else cannot use it. You don’t pay taxes on it so someone else has to pay for it. Sounds kind of unfair don’t you think. I suppose you think its fair that I pay for your property taxes. What a free riding loser you are!

    Let me guess you support Obamacare don’t you. I am surprised that you even own property since I thought that you communists didn’t believe in owning property. I guess its good for others to pay taxes as long as its not you who is paying. What a bunch of selfish greedy pigs you Communists are.

  17. Etta January 25, 2014 at 8:25 pm Reply

    I recently started renting some commercial space in Seattle, WA. Previously, this was was part of a separate space and only recently started being rented out on its own. The location didn’t have a postal address, but the property management company assured me they’d take care of it.

    Long story short, 3 months in my office still doesn’t have an address. What do I need to do to handle getting a postal address for my office location myself?

  18. Glayds February 2, 2014 at 10:16 am Reply

    hi, i will be soon opening a ” doggy daycare” well as soon as i find property that is. it really is a struggle, i need something like a warehouse/barn approx 2000sq ft minimum with outdoor space, but i can only afford approx £15,000 lease a year, and im having great difficulty finding the ideal property, ive searched everywere, does anyone have any ideas on what to do?? have you any tips on what to search for on google to find property, apart from “commercial property/industrial units/ barns etc etc.”

    im getting highly frustrated at this. lol.

    also im uk,warwickshire.

    help would be great. thanx xxx

  19. Ryan February 20, 2014 at 7:28 pm Reply

    How do you rent out commercial property’s? Because if you buy it then the rental income will only cover the price you pay for its morage?? Also how much money do the duggar’s make each month from renting out commercial property’s? And how many do the own?
    ~California girl

  20. Seth February 21, 2014 at 11:55 am Reply

    Is it simply rent and utilities when it comes to the property? Maintanance would be on me I’m sure but anything else I should know about?

    Any red flags anyone can throw ahead of time?

    When planning on getting a grant or loan to start a business, do you have to have the property in mind that you want to use. What if the grant money is to start me off and rent the place. Is that ok?

    Can you even rent commercial property without any income? I am currently on Unemployment but if I do get this grant, I want to pay rent in advance and buy the equipment. With commercial, past history, credit history and all the same things as renting a home, do they all come into play or would they let you go for it as long as you pay?

  21. Dakota February 21, 2014 at 11:55 am Reply

    I found a property with lease type NNN, what does that mean?

  22. Sherrill February 21, 2014 at 12:22 pm Reply

    Why do run down shopping centers still try to get premium lease rates when they can no longer demand them? I was told that it is cheaper to keep them empty. Is this true…Even though I can not find a logical explanation for why it would be? If you have any insight as to why this is, I would greatly appreciate hearing it.

  23. Curtis February 22, 2014 at 12:33 am Reply

    I am very interested in making money in real estate. I would like to learn what, if any, difference there is between real esate investing, and owning rental property. Also, how do I get started and make a profit rather than messing up the process and losing my money? I’d really like to hear from experienced people who have made money doing these things and find out how they did it, how they learned the business, etc.

  24. Ronnie February 22, 2014 at 3:50 am Reply

    Im just asking because if you watch the TV show psych

    the main character Shawn was living in a old dry cleaning business in one episode and Im just wondering is that legal living on a commercial property in real life

    like lets say you buy an old dry cleaners or lease it or like an old state farm office or something like that can you live there and what would you have to do to make it livable under the law

  25. Jacki March 7, 2014 at 11:46 pm Reply

    Should I buy into commercial property with my in-laws?
    I have been utilizing a commercial building for about 6 yrs and the owner (my wifes) grandpa just died and the kids took over, and basically wanted my rent to go wayyyy up. So I pulled my equipment out and store outside and some at my dads and some at my home. Now they are looking to sell. My father in law has a proposition for me to buy the siblings out and own 35% of the building. I dont see moving back inside, but I guess I would have FREE outside parking and a 35% investment on this building and lot, located in a prime commercial area. I can afford the 35% buy in, and my exp. for the build.(tax, insur) would be only 35% minimal)… If we can find additional renters for the outside lot and someone to rent the building, that would be some extra cash flowing in each month. Then one day I would hope to own the entire building for my business or AT LEAST make a nice profit on the sale of the property. What are your thoughts… n
    How does this work? Transfering the deed or title from my father in laws siblings to me and my wife as 35% owners. Also what tax consequenses do we face? I just dont know how the legalities work in a case like this
    I was paying very low rent.. and I believe it would have to be a joint tenancy. Since the in-laws would have 65% interest in the property. Would a laywer give me advice for free? I would hope I can trust my in-laws, since my wife (thier daughter) will be included in the transaction. Finding a renter is going to take some time, but once we get that going, it should be smooth. Worst case, I am paying for my parking spots on the outside through property taxes and insurance(35%) and sitting on a prime piece of land. I just dont really know all the legalities of the transfer of deed, etc
    I get along with my in-laws, and my wife would be on the deed as welll. My father in=law actually works for me… GOOD or Bad? Tell me what you think
    my name would be recorded on the deed as an owner, so how would i lose?
    35% is mine!
    Thanks for the input.. I will most likely do a TIC,,and have some sort of contract legally drawn to show the % ownership.
    Terms for future sale, ect.
    Is Commercial property a good investment>

  26. Charlott March 10, 2014 at 8:33 pm Reply

    Still have to years left on the contract and the landlord got a letter from the county it said that he has 4 months to buy back the property or the title will be transferred . what are my rights ? do i still have to pay rent?
    kemperk . he’s not interested in buying the property back in one year he got 66k on rent from me and taxes are 24k .

  27. Evan March 10, 2014 at 8:34 pm Reply

    I am considering two properties for an auto repair business, currently rent one. Both have at some point sold gasoline, thus there are tanks in the ground. Both buildings would be sold by private owner. I would like to make an offer on one. I could pay cash for ether building. I have no experience buying buildings.

    My attorney said make an offer contingent on inspection and status of tanks and appraisal but said to get an appraisal done ASAP. I guess I would pay the cost of appraisal and inspection?

    I am sorry if this question is vague, but I am essentially clueless how to proceed with the building owner, even what to initially offer. How does appraisal first before offer and inspection in PA after offer affect my initial bid?
    I am confused about why I have the building appraised as potential buyer before offer is made? What if appraisal comes in higher than what I would initially offer? Who pays for all these inspection reports? The potential buyer? The seller? Both buyer and seller are private, there is no realtors involved! Do I need a buyer agent to help me through this process?
    A local realtor I have worked with before offered to be my buyer’s agent (PA) for $500 and compose a written offer for the building. I just sent him an email asking whether we would even need an appraisal (at my expense) if the seller accepts? Then I would just need a building inspection. Waiting to hear back from him.

  28. Dakota March 11, 2014 at 3:01 pm Reply

    property will be owner financed,my primary concern is what do i look for , or expect while looking at properties? thanks

  29. Kerry March 20, 2014 at 10:00 am Reply

    Hello, I am just wondering if anyone is familiar with the law in Ontario regarding a residential tenant living in a commercial property? Let me explain the situation first. I rent a room in a house from the main lessee who rents the actual property from the property owner. He does not have an official lease only verbal. The property was rented to him as a commercial property, and he intends on using the property commercially. I have done some reading on the commercial tenant laws and it appears that if the guy I rent from fails to pay his rent the landlord can seize his property and change the locks without notice as this is a commercial property. What I am wondering is in my situation would they be able to lock me out and seize my property if the guy I rent from fails to pay his rent to the actual property owner? Are there any laws that protect a residential tenant living in a commercial property in such a situation? Am I also concidered a commercial tenant? When I first rented the room from the guy I was not aware that this was the situation. I have tried to search for information on this but could not find any. Would anyone have any information on how this works/any protections that may be available to me in such a situation? Thanks for any information you can provide. 🙂

    Additional information – The guy I rent from did obtain permission from the owner to allow him to rent the room to me, and the owner is aware that I rent from him as my place of residence.

  30. Emely April 1, 2014 at 2:32 pm Reply

    Is it down to the Landlord or the tennants to repair or replace the boiler if it is faulty or needs a new boiler ?

  31. Hiram June 9, 2014 at 12:47 am Reply

    I started renting a commercial property 6 months ago, when i agreed to take on the property there was no water supply to the toilet,my husband being a plumber agreed to do the work free of charge so i had toilet facilities..When he couldnt do the job because we found out there was no water supply and a water company was going to charge £100’s to connect us, the landlord seemed to just ignore the fact i had no water or toilet…
    Anyway, after a couple of weeks of renting i asked my landlord for a lease, which we agreed would be for 12mths.. im still waiting now for the lease, he hasnt showed me one or asked me to sign one..
    Due to the toilet problems and the fact i have no lease, am i able to just leave the property? or would he be able to prosecute me for doing so?
    everytime i ask in regards to the lease he tells me he will sort it soon and asks me if i will agree to a 10yr one, after we agreed to 12 mths….
    Ive seen another property to rent and wondered if i was within my right to leave and move into the other one?
    thanks

  32. Jacque June 12, 2014 at 2:29 am Reply

    Ok, so I have two rental properties (single family homes) and thought about venturing into the apartment options. I found a 5 unit apartment complex that is above a retail space (approx 3700 square feet or retail space). I figure I could break even on payments if the 5 units were rented, so the biggie would be getting the retail space rented. I’ve never leased a retail space. What are the pitfalls, and what should I know about going down this road? I guess I’m more worried about insurance issues and hidden expenses that a novice wouldn’t think about until the bills came. Any resources, books, tapes, etc. that would help out? I think I don’t know enough about this to know what questions to ask and that should be a reason to RUN from this opportunity, but maybe after getting this knowledge, I’d be better equipped to make a decision in the future. Any help from commercial real estate landlords is very appreciated. Thank you so much!!!

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