Even customers need to consider certain important things while investing in commercial property but when it comes to giving it out on rent the entire process becomes much more challenging. As a property owner of a commercial property, you will need to have in-depth knowledge of each feature of renting a commercial property starting from finalizing a renter to getting the lease agreement signed.
- If you have already decided to give your commercial property on rent; then the first most important step is to find a suitable tenant. You may not need to take help of an agent in case you already have contacts with some trustworthy people who are looking forward to get a commercial space on rent. But in case you do not have such contacts then you should take help of an agent. The agents usually have contacts with large corporates and MNCs and the benefit of working with these companies is that they usually oblige to all terms and conditions and are less fussy. Moreover, these large corporates typically take the property on lease for a long period of time and are not likely to default on the rents. However, even if you are taking help of an agent; then also you should conduct a thorough background verification of the tenant from your end which includes the credit status, financial condition and previous history.
- Once you have shortlisted the tenant, the next thing that you need to do is determine certain key terms and conditions such as termination/exit clause, lock-in period, Escalation, rent clause, Sub-let or Assignment rights etc. Apart from this, you will also have to consider certain periodical expenses that are applicable such as service tax and TDS or tax deduction at source, maintenance charges and property taxes. Find out who will be paying all these taxes afterwards. Usually, property taxes are usually paid by theproperty ownerr and the building maintenance costs are paid by the renter.
- In the next step, you will need to sign the lease agreement and get it registered by paying stamp duty and registration cost.
These are some of the steps that you need to follow when giving your commercial property on rent.
So, if you are planning to invest in Ghaziabad Commercial properties to give it on rent; make sure that you follow the above-mentioned steps well.