Buying or selling properties is not an easy task since the risk of tossing into losses due to frauds is omnipresent. This risk endangers the investment worthy of hundreds and thousands of dollars in the sector of buying commercial properties on a lease for a long time. Such annual losses have led to the shut down of many businesses in the past and it will continue to be so as long as people aren’t careful about the reputation of the real estate companies they work with. Only a selected few companies like the Forum real estate firm are trustworthy. Having tons of experience in the industry, such companies put only strategically built commercial properties for sale. If you are a smart investor willing to reduce the risk of investing in something unworthy, the guide below will supply all the information required to dodge fraudsters.
- Legally Possessed Property
You must be given the complete possession of the property for the entire lease tenure. Most importantly, the property should be legally clear for leasing. Thus, be careful of doing proper research before entering a contract.
- Strategically Located Property
Once you make sure that the property is legally owned by the real estate firm you’re working with, the next step is to physically visit the property. The property should fulfill the requirement given below to qualify as a worthy investment.
- Location – The property shouldn’t be built in a remote area. Rather, the venue should be centrally located from all directions, should provide taxiways in all directions, and should be close to all necessary amenities like recreational parks, gas stations, and grocery stores
- Well Maintained And Well-Designed Complex
The building should be strong, renovated if it is an existing property put for resale, and well looked after. If must offer the following facilities.
- Parking area
- Lifts and escalators
- Emergency exit doors
- CCTV security
Other than the above-listed 3 factors that help in evaluating the worth of the building, you must also consider the following tips very carefully.
- Rental/Lease Agreement
A proper agreement between the company and the client must have a clear mention of the following attributes.
- Security deposit
- The longevity of the contract
- Maintenance share (if the charges will be mutually shared or will have to paid by the client only)
- Rent hike/year
- Contract renewal terms
- Loan Facility
Type and amount of loan you take are just as important as the selection of the property. Plan according to the longevity of the contract. Also, consider whether or not you want a fixed interest loan or a floating interest loan.