Tips for Buying Commercial Property to Rent Out

 Posted on July 05, 2024 in Real Estate Law

Becoming a commercial landlord is vastly different from becoming a residential landlord. Instead of renting units to families and individuals who will be living there, you will be renting space to businesses that will be using your property as its storefront or office. There are some benefits to renting out commercial spaces as opposed to residential units. Commercial landlords often enjoy greater access to their property. While residential landlords must generally give notice before entering a unit, if the company renting your commercial space is open to the public, you can simply walk in during normal business hours. However, there are also risks to being a commercial landlord. If you are purchasing commercial property to rent out, you must be represented by an experienced Cleburne, TX commercial real estate lawyer.

What to Consider When Choosing a Commercial Property to Buy

A few things to think about when selecting a commercial property include:

• The type of business you will rent to - Your lawyer will want to research zoning laws to determine what type of businesses you can rent space to. You should also consider what type of businesses you are willing to work with. There is a greater risk of damages if you are renting space to a bar as opposed to a professional office. 
• The risk of a business you rent to failing - If a company you are renting space to goes bankrupt, you might be left in a difficult position. You might be unable to collect past-due rent or left with a mess if your tenant had begun renovations. Certain types of businesses, such as restaurants, are more likely to fail than others. Other types of businesses, like medical practices, are far less likely to fail. Consider the type of company the building you want is suitable for. 
• Managing the risk of illegal activity - As a commercial landlord, you will need to take steps to prevent your property from being used for illegal activity, such as money laundering or prostitution. Everything from the layout of the building to the neighborhood the property is in may be important. Some types of businesses, such as massage parlors, are more likely to be used to commit crimes than others. 
• Versatility - Some commercial buildings are only suitable for a single type of business. If the property you are considering has a kitchen, it is unlikely that you can rent to anyone but a restaurant. You may want to consider choosing a more versatile space, especially if this is your first time buying commercial property. 

Contact a Tarrant County, TX Commercial Real Estate Lawyer 

Cain & Kiel Law is ready to guide both first-time and experienced commercial real estate buyers through choosing the right property. Our experienced Cleburne, TX attorneys for commercial landlords are deeply rooted in the area and understand the needs of local buyers. Contact us at 817-645-1717 for a confidential consultation.