Many people, having rented apartments or condominiums, are familiar with the landlord/tenant relationship. The landlord owns the property and is responsible for certain major aspects of its upkeep; while the tenant is responsible for paying rent, tending to minor aspects of upkeep, and being a good neighbor.
As the years go on, you may find yourself with the responsibility of leasing your property investments. Whether dealing with leasing residential or commercial real estate, you will be faced with the task of finding a trustworthy and quality tenant. To increase the likelihood of finding a good tenant, there is one question all landlords should ask to ensure property and income are protected for the term of the lease: “May we review your business plan?”
At North Bay Property Advisors, we assist many landlords with leasing their commercial property, including lease formulation and the screening of potential tenants. We are always surprised at how many landlords neglect researching a potential tenants strategy for securing positive cash flow in their business.
As we mentioned in a previous post, the rise of the “start-up mentality” has helped to bolster Santa Rosa’s commercial real estate market in recent years. The number of “home” or “garage” businesses looking to find commercial property for lease is increasing steadily, but are these fledgling entrepreneurs ready for the challenges of running a commercial enterprise?
As a landlord you should, “before leasing, make sure you have confidence in the tenants business plan” writes Michael Koss, founder of KossResource.com, an online CRE information site. This means taking time to review both the business and the person you will be leasing to. The bottom line is “a tenant is far more likely to be troublesome if the company is not succeeding in its line of business,” as they will not have sufficient funds to pay their rent.
If you don’t feel qualified or comfortable completing this review for your commercial property, contact North Bay Property Advisors in Santa Rosa today. Our commercial property management experts can handle this entire process for you, ensuring the best possible tenant for your future.