Owning a commercial rental business can be a great way to make money, especially now that it’s in demand. But, it takes more than just setting up shop and renting out a few spaces, considering that over two million companies specialize in it. To be truly successful, you have to understand the ins and outs of the market, know how to set yourself apart from the competition, and stay organized. Here are some keys to help you get started.
Do Your Research
Before you dive into starting your own commercial rental business, spend some time researching the local market. Look at what other businesses in your area offer, their rates, and what amenities they provide for tenants. Understanding what’s already out there will help you determine if there’s room in the market for you or if something could set you apart from others in the industry. Here’s a rundown on the essentials of every market research:
- Understand the demand: Look at factors such as population growth and current rental trends to determine if there is a need for commercial rental spaces in your area.
- Conduct surveys or focus groups: Talk to business owners, real estate agents, and tenants to get their insights on what they are looking for in a commercial rental space. This will give you a better idea of the needs and wants of the market.
- Find out what current tenants like about their space: Don’t just focus on what people don’t like about currently available rental spaces. Instead, think about what makes specific spaces more appealing to business owners.
This can help you determine what features and amenities are important to tenants so that you can include them in your spaces. Once you understand the local market, start thinking about how to set yourself apart. One way to do this is by having unique offerings.
Provide Unique Offerings
In addition to offering standard amenities, you can also distinguish your commercial rental spaces by providing things other businesses don’t offer. Here are some essentials you need to give to your tenants.
Wi-fi and Connectivity
One of the essential amenities for tenants today is high-speed internet. Whether you offer it as part of a package or charge separately, keep your spaces up-to-date with fast and reliable connectivity.
Almost every business owner will tell you that location matters when choosing commercial rental space. When deciding where to set up a shop, consider proximity to customers, restaurants, shops in the area, and parking.
The short-term rental market is growing, and it should be an offering you consider giving to your tenants. This can help businesses that only need a space for a short period of time or have fluctuations in the size of their team.
Set Rates & Policies Clearly
When it comes to pricing for your commercial rentals, it’s essential that you set clear guidelines upfront before signing any leases with tenants. Consider offering discounts for long-term tenants or add-ons such as parking spaces or utility packages that could entice potential renters. Also, ensure that everyone who rents from you is aware of all policies and fees so that there are no surprises down the line when it comes time to renew their lease agreement.
Attracting Quality Tenants
It’s also important to focus on finding quality tenants. Here are ways to do that.
Boost Curb Appeal
How your property looks from the outside will affect the likelihood of potential clients stopping and taking a tour. Make sure your store is clean, has well-maintained landscaping around it, and has signage that’s easy to read. Additionally, fix any damages on the sidewalks. You can contact your local concrete companies for this. They can pour new concrete and make sidewalk repairs if necessary.
Offer Flexible Lease Terms
Another way to attract quality tenants is by offering shorter lease terms, allowing them to pay month-to-month, or renting spaces on a short-term basis. This flexibility can help businesses during their start-up phase or when their needs change quickly, and it appeals to people who may not be able to commit to a lengthy lease agreement.
You must stay organized when running a rental business—especially when managing multiple units across multiple locations. Keeping track of rent payments and tenant complaints can become overwhelming if not managed properly.
Invest in quality property management software such as Buildium or AppFolio, which can help streamline invoicing and tenant communication processes while providing comprehensive reporting capabilities, so nothing slips through the cracks.
Starting a successful commercial rental business requires research on local markets and competitors and having clear policies for rates and tenants alike – plus, staying organized with property management software can be helpful! With these tips in mind, entrepreneurs can feel empowered to take their first steps toward owning a profitable commercial rental business!