If you are looking at generating a nice, steady flow of income, then consider buying and renting out an office space. Many business owners consider a rental business to be an excellent investment, based on the ROI it provides. We know that commercial property sales are amongst the best investments you can make in today’s economy. Unlike a residential property that can go for years without any tenants, office spaces do not remain vacant for long.
There are always businesses out there that are looking for somewhere to settle, and they are often willing to pay more for the right location. But before you start your office leasing services, there are a few things you might want to consider:
- Making money by renting out office spaces
Starting your own business by renting out office spaces is a great way to bring in a reliable source of income. An investment like this is a more attractive way to create passive income (compared to buying shares), given the instability of the stock market. More and more people are realising their business goal is to start their own company, so office spaces are more in demand now than they ever have been before. Building your own office from scratch as a new business is unnecessary and much more expensive than just renting. That’s why most businesses look to rent offices from the get-go. You can provide a space for a company to do their daily operations, all while you are filling up your savings.
- Things you need to remember
Renting out an office space has become a popular way to make cash for even the most established entrepreneurs. It offers a reliable source of income every month, so you won’t have to worry about long periods of vacancy. When you determine the price of your space, you will need to compare it with other office spaces that are for rent in the same area, as you need to compete with their prices, services and amenities. If your office space is located well, with plenty of foot traffic, then you can increase the rent price of your property. If you have private meeting rooms, parking spaces and equipment that can be used, your commercial space will become more valuable.
- Offer a monthly agreement
Small businesses often like to rent their spaces on a short-term lease, as they can’t afford to take part in financial gambles. You may consider offering a monthly agreement to these clients. That way, you can attract more tenants, and neither of you is bound to a long-term contract. Business owners like flexibility, given how unpredictable the market can be.
- Securing your payments
You should always ask for a deposit from the tenants. The law allows you to do that as a security measure, so you are protected in case the renter decides to skip town. Aside from using deposits for things like unpaid rent, it can also cover damages that may have been done. Ensure that your deposit is reasonable.
- The welfare of your clients
If you are considering the welfare of your clients, then you are going to have a business that is thriving. Help to make their lives easier. Consider partnering with an office equipment company and offer great deals to your tenant. If you have readily available office equipment, consider leasing it to your tenant for their convenience. Good customer service goes a long way!
- Marketing the office space
Now that you know all the things that you need to consider it is time to make a plan for how you are going to market the office space. Marketing your office space can be stressful, but don’t let it be. Use a wide variety of industries all around you to market your office space.