Are you a private or commercial landlord? Thinking of becoming one? Unsure what the deal is in relation to leasing residential property and understanding who’s got the upper hand?
We’ve got a big list of things to consider when you think about becoming a private or commercial landlord. To help you out, we’ve broken down our guide into the following categories
As a landlord, you have to consider the time and financial commitment involved in managing rentals. You have to be ready to take on fulfilling all the administrative duties that come with managing real estate or being a property owner.
Commercial landlords have more paperwork to do and are expected to have higher credit scores. Private landlords are typically interested in what kind of income you can send them as they want their investment protected and appreciated.
The main question in your mind should be: Do I want to purchase a private or commercial property? This choice will impact the overall cost as well as what you can expect from the property.
If you’re looking to buy a commercial property, you need to have a thorough knowledge of the area and market in which you’d like to invest. If residential is what you’re interested in, find out whether you want to focus on a particular part of town or perhaps the suburbs.
If you are a private landlord, you will want to make sure that your lease complies with state and local laws. State and local laws must be considered in order to determine the option that’s best for you.
When it comes to renting out an apartment, you might not know everything required under your state or local laws. Are there registration or licensing requirements? What is the process for evicting a tenant?
The answers to these questions will likely vary from place to place. Be sure to check with your state and local government agencies for any regulations specific to your property.
Do you have enough money to invest in the property? Should you invest in private or commercial property?
Private – Usually owned by a single person or couple with few, if any, additional people involved. They are usually better off financially than a commercial landlord. Long-term tenants are their main source of income, and they most likely live in the property themselves.
Commercial – Usually owned by one or more companies with a great number of investors and/or partners. It is common for a commercial landlord to outsource management to a third party firm so they can concentrate exclusively on acquiring new properties and generating revenue from current holdings. Long term tenants are not their main source of income.
Well, it’s a big-time decision, with thousands of people in the UK oblivious to which option they are currently on, according to recent research. Private landlords collect rent directly themselves, while with a commercial landlord, you go through an agent – otherwise known as the management company.
Whether you choose the private or commercial route, we’ve listed some of the primary questions that arise during these types of transactions. We hope this helps you make an educated decision on what might be the best for your interest and prospective renters.
To read more on topics like this, check out the House category