Leasing Property

But Daly cautions that leasing in a planned building contains its own mix of attractive features and uncertainties: "Building features [in a planned building] will be new, up-to-date and, to a certain minimal extent, capable of adjustment to tenant need. If your lease is important enough to the developer, you may receive some attention when it comes to special requests for identification, parking, security, a prime location in the building, etc." Nonetheless, small business owners should be cautious when approaching such leases, for both the final appearance and utility of the building—as well as its costs—remain unseen and untested when the building is in its planning stages. "Proposed rental rates must be examined in the light of comparable projects with similar advantages," Daly wrote. "Descriptions of less obvious features like parking, air handling systems, security, maintenance, etc., should be clear and complete. The track record of the developer making the offer should be inspected carefully. Is there a history of quality construction at the rental rate asked, or one of build for quick re-sale? Is there a reputation for good maintenance or benign neglect? Regardless [of] the size of the lease or the duration of the proposed tenancy, these and related questions should be probed."

PROPERTY LEASING AS A BUSINESS

Buying, holding, and leasing property is also a common small business practice. It may begin modestly when a couple has difficulty selling a residence and chooses instead to rent it out. Then, with experience gained, they expand the activity business by buying, restoring, and leasing other properties. The small business owner, now a lessor, will be guided by those principles which favor the lessor, already indicated above. Leasing commercial property is sometimes the start and sometimes the culmination of such ventures. While most of the fundamentals of leasing are well-established and traditional, innovation is still possible in marketing such properties. An example is reported by Brandice Armstrong, writing in the Journal Record (Oklahoma City). Armstrong writes about the success of an Oklahoma City couple engaged in home and commercial leasing in leasing a commercial building. The owners hit upon the idea to hold an "open house," virtually unknown in the commercial field. They offered refreshments and door prizes. They immediately garnered 14 meaningful leads.

 PREV  1 | 2 | 3