Professional leasing agents save you time and money. Ask fellow business people to recommend a commercial real estate agent who helped them. A real estate agent who specializes in commercial leasing will have knowledge of the local market and can help you find the right space that fits your budget and your time frame. That agent can represent you, the tenant, and guide you through the process that may not be totally familiar. Fees are paid by the landlords.
Finding a tenant can be a challenge in today's market. You may want to try to find a tenant on your own by street signage and advertising, in print and on the Internet, or you may want the help of a professional leasing agent. If you don't want to list your property with a commercial agent, sometimes just making them aware that your space is available is a good enough place to start. You can establish what their fee would be in the event they find a tenant for you. If you opt to list your property, they take over the marketing of your space which can save you a lot of time, energy and frustration. They will also look after negotiating the offer to lease as well as all the details necessary for the new tenant. Commercial leasing agents deal with leasing prospects on a daily basis so they are more likely to come across a potential tenant for your space.
If your property is a multi-unit, it is best to have it full of tenants and receiving maximum rent when selling. Given the buyer will be purchasing it as an income property, the value is largely determined by the rental income.
If you have a single family home or duplex, the buyer may intend to move in to the house. In this case it is important to consider your existing tenants and their needs. The buyer will still be obligated to honour the terms of their lease.
If you are aware you will be selling within the next year, you may want to consider month-to-month leases. This will give you the flexibility to end a lease agreement with 30 days’ notice to the tenant, should your buyer want to move in immediately upon close.
~~If you want to put less than 20% down on a property, your mortgage will need to be insured. If you have an insured mortgage already, it is likely you will need 20% down plus your closing costs (budget for 2% of the purchase price) to purchase an investment property. Investment property that needs work to be rentable will require an additional investment. However, there are options to have this money incorporated into your mortgage financing, speak to your bank or mortgage broker. If you are looking to invest in property and don’t own a home already, this is a great opportunity to enter the property market with fewer dollars down by getting a high ratio mortgage (less than 20% down). Note, these are only your initial investment costs. A good investment property should bring enough income to cover expenses going forward. Whether or not you can afford this amount to invest up-front is something to consider carefully.