Workshop Rental: Rent Out Your Workshop in 10 Simple Steps
If you are a real estate company, commercial broker, administrator, private landlord, or business wishing to rent out your vacant workshop, it's crucial to approach the task systematically to avoid wasting time and ending up with a vacant workshop for a short or extended period. We've created this guide for you on how to rent out your workshop.
If you're instead looking to rent a workshop, you can follow this guide: Renting an industrial property: How to rent a workshop space – The 8 most important steps.
Step 1: Start renting out your industrial property quickly
When a tenant terminates their workshop lease, landlords usually have at least 3 months to find a new tenant. However, this duration can vary depending on the contract. Therefore, it's essential to begin by reviewing the contract to determine the notice period your tenant has.
Renting out a workshop space takes time. Regardless of the notice period, you should initiate the rental process immediately. At the same time, it's crucial to avoid rushing and not just rent to the first available tenant. Try to understand the market so you know which type of tenant to target and what price you can achieve. Your goal is to find a long-term tenant for your industrial property.
Step 2: Describe your industrial property for rent
Provide a detailed description of your workshop space. Specify size, rental price, condition, deposit, etc. Describe the premises positively. Also, define the allowed uses for the workshop.
Consider what facilities you can offer, such as meeting rooms or parking opportunities. These additional services can be attractive to potential tenants. Ensure that your workshop appears inviting and well-maintained, as tenants often prefer spaces in good condition. Also, price your spaces correctly relative to the market. You can see what others charge for their workshops on Companyspace.com – check, for instance, industrial property for rent in Europe, industrial property for rent in Denmark, industrial property for rent in Sweden, industrial property for rent in Norway, industrial property for rent in the Netherlands, and industrial property for rent in Germany.
Step 3: Identify your target group of tenants
After describing your workshop, it's time to consider which businesses would be the best fit. Your goal as a landlord is to find a company that will rent your premises for an extended period. The better you understand the profile of your ideal tenant, the higher the chance of finding a tenant who will stay for a long time and provide consistent rental income.
Step 4: Create a sales presentation for your workshop
Make a presentation that compiles all data regarding your workshop lease in one presentation, allowing potential tenants to quickly get an overview of what you have to offer. The presentation should, at a minimum, include information about the area, location, type, price, annual costs, and other relevant details. Also include a detailed description and images of the spaces.
Step 5: Consider using a professional broker
While many real estate companies and private landlords manage rentals themselves, you might consider engaging a professional broker specialized in workshop rentals. A broker can assist in creating the presentation, finding potential tenants, drafting the rental contract, and handling communication with the tenant.
Step 6: Advertise your vacant workshop
Begin marketing your workshop by posting ads on relevant platforms. Describe the space clearly and include quality photos. Utilize online advertising and social media to reach potential tenants. Remember to post your ad directly on Companyspace.com, which is Europe's largest portal and search engine for available workshop spaces. Also, consider leveraging your own network and reaching out to businesses that might be interested.
Step 7: Show the workshop to tenants
As interest starts to grow, you'll need to arrange viewings of the workshop for potential tenants. Prepare questions for tenants to ensure their needs and expectations align with your spaces. Be open to negotiating on price and potential adjustments.
Step 8: Review the tenant's background
Once you've identified a potential tenant, it's essential to conduct a background check. Investigate the tenant's financial stability and reputation by pulling relevant information from public records and online review platforms, such as Trustpilot.
Step 9: Sign the lease agreement
After vetting the tenant, you can sign a lease agreement. It's a good idea to have a lawyer review the contract to ensure it's accurate and legally binding. The lease should contain all necessary terms, including rental price, duration, usage conditions, etc.
Step 10: Maintain communication with the tenant
Even after the lease is signed, it's essential to maintain communication with the tenant. Monitor the condition of the spaces, address any issues that arise, and maintain positive communication to ensure the tenant thrives and remains a long-term renter.