Just Become A Commercial Landlord? Here's Some Advice For First Timers...

It is not easy to decide whether being a commercial landlord is right for you, especially if you have never been a commercial landlord before which is totally different to being the landlord of a residential property.

No one goes into commercial letting thinking that they will have a bad tenant who causes issues, but it is possible for one to seriously harm your business venture before you have seen the fruits of your labours materialise.

Firstly, despite what the TV says, property is not a get rich quick scheme; it takes hard work and investment. You will need to be sure that you already have sufficient capital to pay the commercial mortgage even if the property is empty. There may be some times during the year, especially with buy to lets, when tenants are not in ready supply. It is at these times that you will have to delve deep into your own resources and pay the mortgage yourself.

As a landlord, you have a number of duties and responsibilities to your tenants. For example, you may be required to spend money on repairs or maintenance to the property. You will have to be on hand to fix leaking pipes or a broken boiler at any time of day or night which can be tough if the property is a distance from your home or you are away on holiday at the time.

Commercial Buy to Lets have to be in tip top shape at all times, more so than residential buy to lets because of the mountain of regulation and red tape on workplaces. This will obviously cost a pretty penny so make sure you budget and have enough money to cover any sudden disasters or problems.

Many people believe that being a landlord is simple, and that a property can simply be signed over and the tenants can be 'left to it', but as you can see from what we have looked at above, there are many things that need to be looked after in a rental property, regardless of the property type.

Your reputation as a landlord and the effort you put into your work (and it is work!) will pay off eventually, a better property will always command better rates and be rented by better tenants.

For you commercial property to be successful and always have a tenant, it is not just about finding a bargain property and sprucing it up. Location is more vital than in the residential sector, buy commercial property where you know there is going to be demand for certain businesses. In most cases, the easiest market to target are students and student areas, newsagents, off licenses and takeaways will all be busy and owning property that can attract these sort of tenants makes good commercial sense.

Remember to obtain buildings insurance for your commercial property. Most commercial mortgage lenders, similar to residential lenders, will require such insurance to be obtained as a condition of the mortgage, and the insurance will usually need to be obtain before contracts are exchanged.

Make sure that there are no ambiguities in the contract when it comes to areas of responsibility. Responsibility for gas and electricity safety tends to fall upon the landlord, but there can be instances where it is the job of the tenant to sort such things out. Be completely clear from the start as to who is legally obliged to do what and there should be little room for dispute later on.