Simple steps for successful rental of Commercial spaces in Europe
If you, as a property company, private landlord, or business need to lease your vacant commercial properties or commercial leases, it's essential to do it systematically and consider several factors. This way, you'll avoid being in a situation where you can't lease your empty commercial properties or commercial leases, so you don't lose a lot of money on the rent.
Step 1: Start the rental process quickly
As soon as your existing tenant terminates their commercial lease, you typically have at least 3 months to find a new tenant as a landlord. However, this can vary from contract to contract. Therefore, it's crucial to first check your rental agreement to be certain of how long you have before you stop receiving rent.
Renting out commercial properties doesn't necessarily happen quickly. When you receive a notice, you should promptly list your commercial property for rent. This applies whether your commercial space is an office, shop, warehouse, workshop, clinic, restaurant, or a co-working space.
However, it's also crucial not to rush into leasing your commercial properties to the first potential tenant. You should familiarize yourself with the market, so you know what type of tenant to look for and the price you can expect for your commercial properties.
Many commercial property landlords wait too long to start the leasing process. This delay ends up costing landlords a lot of money because they end up with vacant commercial spaces that aren't generating monthly rent.
Many commercial properties are leased every single day. With the right approach, it becomes easy and quick to lease your commercial property.
Step 2: Describe your commercial space
Provide a thorough description of your commercial properties. What's the size of the commercial spaces, what should the price be, what's the condition, how much is the deposit, what's the intended use? Can it be used as a shop, warehouse, workshop, office, restaurant, or co-working space? Make the description positive.
Also consider what services and facilities you can offer. Are there meeting facilities, conference rooms, a cafeteria, parking, or other features that might interest tenants? If you can provide something that businesses can't find – or have difficulty finding – elsewhere, it's an advantage.
It's equally important to walk through the commercial lease and ensure it appears attractive and inviting. Remember, tenants prefer to rent a commercial space that's well-maintained and welcoming.
You should also be aware of the market standard, so you don't price yourself out. On Companyspace.com, you can always see what similar commercial properties for rent cost. For example, commercial space for rent in all of Europe, commercial space in Sweden, commercial space in Denmark, commercial space in the Netherlands, commercial space in Germany, commercial space in Norway, etc.
Step 3: Identify your target group of tenants
After analyzing and describing your commercial lease and its advantages, you can begin to consider which type of businesses would benefit from leasing your commercial spaces. Which industries best match your location? Which sizes of companies would benefit from your facilities? And which services would they appreciate?
As a landlord, you earn your profit through long-term leases. It's very costly to have tenants for short durations. The better you are at creating a profile of your ideal tenant, the greater the chance that you'll find the right tenant who stays and pays consistent rent for many years.
The ideal tenant should provide you with a steady rent that simply flows in without issues for at least 5 years – but preferably much longer.
Step 4: Create a presentation for your commercial space
Now you are ready to draft a sales presentation. The purpose of the presentation is to provide an overview of the lease, angled towards the type of tenants you wish to attract.
The sales presentation should include data about the area, location, type, price, annual costs, and other conditions.
Ideally, the presentation also contains a detailed description of the lease and photos.
Step 5: Consider using a commercial broker
Most property companies and private landlords manage the leasing of their commercial properties themselves since the leasing process is a straightforward task. However, there's an option to use a commercial broker who specializes in leasing commercial spaces.
The commercial broker can assist you with:
- Creating a sales presentation and valuation
- Finding potential tenants
- Drafting a rental agreement
- Handling all contact with the tenant and advising on the optimal tenant
- Ensuring that the commercial lease gets rented out
It can be advantageous to use a commercial broker as they might have a more extensive network and thus can find more potential tenants. They also manage all communications with the tenants and arrange property viewings. A commercial broker typically charges a significant initial marketing contribution and a fee of 15-30 percent of the first year's rent.
Step 6: Promote your vacant commercial space
You are now ready to start marketing your commercial properties. Here's the ideal process:
Advertise your vacant commercial properties for rent on Companyspace.com
It's crucial to create an appealing advertisement that clearly and distinctly describes your commercial spaces and your contact information. Remember to take good photos of your commercial properties so tenants can see what they are renting.
You should then post your advertisement directly on Companyspace.com, which is Europe's largest portal and search engine for vacant commercial spaces. Companyspace.com is used by nearly all businesses looking for new premises. By advertising your commercial properties for rent on Companyspace.com, you are effectively exposing them to a large portion of businesses searching for spaces at any given time.
You can advertise all types of commercial spaces and leases on Companyspace.com, including retail spaces, offices, clinics, warehouses, workshops, restaurants, and shared offices.
Directly contact the businesses searching for commercial spaces
You can also directly approach businesses that are in search of new commercial properties. Many of these businesses list their requirements on Companyspace.com. You can directly search for potential tenants and get in touch with businesses seeking spaces similar to yours and invite them for a viewing.
Use your network to find a tenant
Always utilize your personal network. Many businesses indeed find their new spaces through networking and personal contacts. So, if you know someone looking for new premises, reach out to them and tell them about your available commercial properties. Maybe you can strike a deal.
Use social media
Social media presents a golden opportunity to reach numerous potential tenants simultaneously. Create an ad on Facebook or other social platforms to showcase your commercial spaces. Companyspace.com has established and manages several free space-rental groups on Facebook that you can join for free. By posting your properties there, you can expose them for free to thousands of potential tenants.
Step 7: Showcase your commercial lease
You should now start receiving inquiries from interested tenants. Treat every lead and every contact as invaluable, as it could be the perfect tenant reaching out. Whenever you showcase your commercial properties, have a mental list of questions to gauge if the tenants viewing the property are a good fit for you and your spaces. Allow tenants time to look around and ask questions. Be open to price negotiations and consider potential tenants' wishes regarding layout, terms, etc. If a tenant wants a lower price or wants you to cover the cost of certain modifications to the space, don't necessarily react negatively. Instead, use this as an opportunity to negotiate a longer notice period for the lease.
Step 8: Vet the tenant
Once you've identified a potential tenant to whom you'd like to rent your commercial property, it's essential to vet them thoroughly. The most important thing is to investigate their financial standing. You can easily pull their financial statements from public databases. You can also check their customer relationships on platforms like Trustpilot. Your gut feeling also plays an essential role, as renting to the wrong tenant can be quite costly.
Step 9: Sign the lease contract
Once everything is set and you've identified your future tenant, it's time to solidify the agreement in a lease contract. Ensure that a lawyer reviews the lease agreement to guarantee its legality. The lease should include information on rent, deposit, binding period, usage areas, expected costs, maintenance, and subletting. It's an absolute no-go to download a contract template from the internet. Always involve someone with legal expertise in the lease agreement.
Step 10: Maintain contact with the tenant
Even after signing a lease with a tenant, it doesn't mean you should neglect monitoring your commercial properties. You still need to keep an eye on their maintenance, potential damages, and whether the tenant is treating your property fairly and appropriately. Maintaining a good relationship with your tenant is also crucial. It ensures their satisfaction, prompting them to remain tenants for a long time, ensuring a steady flow of rent for you. Investing in maintaining a positive relationship with your tenants is indeed well-spent.