After hiring a couple of employees and renting an office, it seems that you’ve done your part, but that’s not entirely true. Although you’ve done what’s necessary, it doesn’t hurt to go the extra mile by helping your employees settle in on their jobs and create a productive work space. After all, once they adapt to the business, their productivity will soar.
More productivity means more work done, and more work done means more money for the company.
The best part is that you don’t necessarily have to guide them each step of the way. Creating favorable working conditions would be more than enough to help them become more comfortable, and that’s what this guide is all about. Below are four ways to breed productive employees through improving their workspace:
1. Incorporate Natural Sceneries
You may have heard from somewhere or someone before that greeneries and natural light can improve your mood, and yes, it’s true. Humans have a desire to connect to nature, which is why a study has found that even just a minute with nature can lead to a feeling of relaxation, which may increase productivity.
While it’s true that nature itself can lead to relaxation, there are other ways to make the workspace much closer to nature, and that’s by getting air filters that eliminate pollution. Of course, you can buy some plants and place them in your employees’ desks, but if you find a custom filter that pretty much does the job, there’s no need to bother with buying greeneries.
2. Provide Proper Equipment
Surely it must be evident that one of the best ways to improve productivity is by providing the proper equipment. Employees may feel disheartened knowing that the business they’re working for cannot provide them with the necessary tools for the job, resulting in less productivity.
The pieces of equipment you’ll need to prepare to differ according to what business you run. For most office jobs, employees must have their own desks and gadgets such as computers or laptops. Other than working equipment, you also have to consider buying equipment that brings comfort such as ergonomic chairs.
3. Mind the Temperature
Electrolytes, a compound that serves as energy for the body, deplete much faster in hot conditions. On the other hand, excessive coldness can lead to discomfort and even vulnerability to diseases. In other words, the temperature must be perfect. You can either use air conditioners during hot climates or heaters during the cold weather.
4. Introduce Colors to the Office
Is there a feeling of relaxation when you see the color blue all around you? Do you feel a sense of excitement when you’re surrounded by red walls? That’s probably because colors can affect a person’s mood, just like nature.
For that reason, it’s a good idea to paint your office walls with a color that improves productivity, but which color? You may have already guessed it, but red is an excellent color since it keeps the heart pumping, which might be necessary to employees if they somehow feel bored during work hours. Blue is also a great alternative as it exudes a calming atmosphere, which can help your employees focus on their tasks.
No matter how high the pay is or how nice you are to your employees, you can’t guarantee that they’ll become much more productive. What they need is a good productive work place, one that suits their needs and provides them with comfort. While it’s not an easy task, this guide should make it less complicated. However, remember that great things aren’t free, so don’t be afraid to invest in your business and your workforce.
And if you are looking for office space wher you can creat a productive work space, we can help with our network of local tenant reps. Contact us today to find out more. Our services are free to you! No obligation either.
For some, it would seem that property owners lease office space to just anyone. Not so. Even if the office space has been vacant for more than a year, most landlords follow a qualification system.
Ordinarily, this process involves assessing credit statements, background verifications, tax returns, or examining references. Even so, your financial reports aren’t the only valuable documents property owners go over before deciding to lease your office space. How landlords perceive you is also critical.
In case a property owner feels you’re an unstable tenant, you’ll most likely lose the contract. So, to gear you up on your next meeting with a landlord, here are six things that a 2020 case study by Uxbridge business park found that you may need to do to qualify for renting an office space.
1. Furnish a Solid Business Plan
Do you have a brand-new company? Furnishing a solid business plan to the property owner is fundamental to demonstrating your business knowledge to the landlord. You can also give a background on the company budget, expected sales, competition, etc.
It is better to include details such as when you forecast your company to be productive and break even. As a future tenant, your target is for the property owner to believe in your company the same way they will trust your tenancy.
2. Submit Thoroughly Completed Form
In case the landlord provides you the lease application form, submit it after filling out all the data completely. It may sound straightforward, but often some company owners neglect to complete it. If you want to avoid leaving a wrong impression, submit a thoroughly completed form to guarantee your application is on top of the file.
3. Enlist a Credible Tenant Advisor
Enlisting the services of a reputable tenant representative (like the ones we have at OfficeFinder) and/or a lawyer can prove to property owners you’re serious about renting an office space. Having professional representatives to help you deal with landlords will ensure you’ll be able to talk about every crucial detail in your contract and avoid costly mistakes.
What’s more, they can help you shorten the negotiations with the property owner and avoid lengthy proceedings. Also, tenant advisors are familiar with the real estate market since they do this day in and day out.
4. Provide Statements of Assets & Liabilities
For property owners to see your company as a qualified tenant, provide your bank statement showing your assets and liabilities. This statement will show the landlord if your company has adequate assets or cash to pay off your lease after factoring in your debts.
Furthermore, property owners want to see if your assets and cash can cover your entire lease in case of a business failure. Handing over an impressive statement of assets and liabilities will ensure your deal will end positively.
5. Display Stable Credit History
It’s common for companies to experience late payments on loans or credit card statements. In case this happens to you, this is the time to change and clean your habits. For property owners see you as a steady tenant, you need to demonstrate you’re financially stable. And as proof, this will require exhibiting strong credit and financials.
If you’re planning to apply for any loans, begin with the application already so you can show sufficient cash flow to cover your lease. You can also provide these other standard requirements: balance sheets, tax returns, cash flow documents, and other notices from your bank indicating your financials.
6. Be Ready to Relocate Soon
Finally, if the space you’re eyeing is in a popular and hot office location, see to it you can relocate immediately. Most often, landlords lease prominent locations fast. In case you chance upon an area you feel is right for you, focus on securing the place to prevent another company from renting it.
When there are one or more groups wanting to secure a specific office space, landlords typically favour the able, ready, and eager to move party quickly. Remember, property owners avoid wasting time on clients who are not aware of their requirements. It’s best to know your office space needs, electrical requirements, and zoning needs so you’ll have an idea if the location is a good fit for your company.
As an entrepreneur, one of the significant decisions you have to make is whether to purchase a property or rent an office space for your business. If you’re starting your firm and working on a limited budget, it might be in your best financial interest to lease office space.
Please note that it’s essential for potential clients to know you have an office they can physically visit. Showing customers you possess an office space is a huge step in establishing your company. Moreover, demonstrating to property owners, you’re ready to rent will help you get that office space faster.
If you need help finding office space to lease, whether conventional or flexible space, we can help. Contact us today for a no-obligation discussion on how one of our tenant representatives can help.
Office Space Rental is one of the significant expenditures of a rising company. It makes sense then that negotiating for an acceptable lease is a challenging yet necessary process one has to take. Take note that there are several approaches you can adopt to obtain the best deal without undermining your finances or slowing down your business.
Regardless if you hired a tenant broker, do your research on the space you want to rent. Are there other companies eyeing the property? How long has the place been empty? These are aspects that can significantly impact your negotiation process.
And since there’s no such thing as a standard lease, you will find below five tips when negotiating the office space rental you want.
1. Settle Length of Lease Period (Term)
Property owners or landlords are usually amenable to grant long-term leases. In a way, this condition can be beneficial; however, it’s normal for the company to adjust. When this change happens, you’ll find yourself stuck in a lease with either a sizeable or small space for your business.
As a tenant, aim to negotiate a short-term contract with extension options. For instance, seek a two-year deal with a two-year extension option instead of a four-year agreement.
2. Manage Rent Hikes
When it comes to office spaces, it’s unusual to find fixed rent with long-term contracts. Typically, property owners expect yearly increases based on rate hikes found in the Consumer Price Index (CPI).
If the landlord requires rent hikes, see if you can arrange for a fixed CPI rent increase. For example, your monthly rent is $7,000 a month. Your second year will increase to $7,200 per month, then $7,400 a month on your third year.
3. Explore Hiring a Tenant Broker
Yes, it’s common to come across stubborn landlords with unreasonable requests. If you’re in this tight situation, you may want to look for alternative office space to rent.
A credible tenant broker, aka tenant representative, can help your company search for available spaces or industrial developments like the Gloucester business park. These professionals can give you a background and help you understand the dynamics of the market. Moreover, they can help you discover office spaces that satisfy your standards, set up viewings, and go with you to see these properties.
Tenant brokers likewise help their clients draft offer letters and deal with property owners so you can obtain a sensible lease for your company.
4. Discuss Office Space Improvements and Repairs
Meanwhile, please note that some contracts will include clauses that state tenants must reinstate premises to their primary condition.
See if you can modify the provision to say that you will return the office space in the same state at the start of your contract as a tenant. This condition excludes devastation by fire that isn’t the responsibility of the tenant and usual wear and tear.
Furthermore, if the property requires upgrading or enhancements, who is responsible for these repairs? Suppose you want fresh carpets, new paint colours, or re-arrange the layout of the office area. Take note that many leases state that tenants can only modify the property with the property owner’s consent.
Request for a provision that allows you to render alterations with the landlord’s permission and that consent will not be unduly conditioned, hampered, or delayed.
5. Be on the Lookout with These Provisions
Lastly, be on the lookout for these one-sided clauses that strongly favours property owners:
The property owner restricts potential assignment or subletting
The property owner expects the tenant to settle tax escalations stemming from the property sale
The property owner has the right to rescind the contract at the landlord’s convenience
The property owner rents the space ‘as is’ to waive compliance with the Americans with Disabilities Act or any environmental laws.
The property owner demands a personal guarantee of the principal shareholders of the business
The property owner transfers to the tenant additional operating expenses such as repairs, insurance fees, and building taxes.
Keep in mind when negotiating an office space rental, it’s best you carry a definite understanding of what you’re willing to consider and what you can propose. It is also best to have a tenant representative working on your behalf. Always document everything in writing when clarifying lease details that you don’t understand. While this will make the process longer, it will provide you legal protection in cases some of your negotiated terms get excluded in your contract.
It’s essential to study your lease carefully. The contract can possibly contain numerous details you’ll not understand. When faced with this kind of scenario, highlight each unclear point, and discuss it with your tenant broker or the property owner.
Our tenant representatives at OfficeFinder do this day in and day out for their clients. Contact us so we can connect you with one in your area. There is no cost for their services and no obligation to request info.
Making decisions about renting office space is more challenging because of the impact of coronavirus or COVID-19 pandemic. Many people are asking how the current health situation affects office leasing and businesses at large. Is work-from-home the latest trend? Or will the new normal open more opportunities for commercial property owners?
In this article, you’ll learn the essential things about renting office space following the pandemic.
Health And Safety Protocols Compliance
In the ‘new normal,’ property owners are mandated by governments to comply with all health and safety protocols set in place to protect the public. Future tenants are also advised to do the same.
In order to find tenants, office operators are taking this seriously. As an example, our friends who have Offices in Manbre Wharf, have fully implemented health and safety protocols to ensure that tenants are safeguarded from the threats of COVID-19. Everywhere else in the world is having to do the same.
So, what are the general health and safety protocols when it comes to renting offices?
Here are the details of the scope of health and safety protocols involving renting office space and other commercial establishments that you should know before renting office space:
Risk Assessment: Assessment of environmental, health, and safety risks, which tackles the responsibility of landlords and property owners when creating rental policies and agreements.
Management And Reporting Of Cases: It tackles the responsibility of landlords and property owners to report any case of COVID-19 during the period of lease to concerning health and government authorities.
Implementation Of Guidelines: Once health and safety guidelines are fully explained to tenants, landlords and property owners should do all means to monitor full compliance. On the other hand, tenants, particularly office or business owners, must make their employees aware of the policy.
Social Distancing In Offices
Before the strike of COVID-19, many office layouts and designs have open plans, which aimed to promote good collaboration, better communication, teamwork, and cost-savings. However, the current pandemic forces everyone to maintain physical distancing or what is called “social distancing” to keep people safe from one another.
The US Centers for Disease Control and Prevention (CDC) suggests that people practice social distancing by maintaining at least a six feet distance between individuals. Because coronavirus is highly contagious, employee desks must be spaced wide apart, and possibly each employee should have an individual cubicle to avoid getting infected.
Renting Additional Office Spaces
It is now impossible to fit employees in offices as pre-COVID-19 having the same number of people in the same square footage. Business owners either need to set alternating work schedules for their employees by creating an Agile Workplace or lease additional office space, which means additional overhead cost.
Here are some benefits of renting additional office spaces following the pandemic:
Be able to resume peak business operations to attain higher productivity and revenue as compared to last year.
Help businesses recover from low production and sales because of temporary closure or sluggish business operations during the peak of COVID-19.
During the new normal, renting extra office spaces is a better option than compromising the health of your employees and facing legal consequences due to negligence.
Corporate Culture Adjustments
Workplace culture greatly transcends in your office. Corporate culture is highly reflected by the office layout and structure because collaboration, open communication, and promoting productivity are readily seen through open plans. However, there must be some adjustments following the pandemic, which means less worker density, fewer meetings, and less social get-togethers.
When renting a new office space, you may need to also make some adjustments to your previously planned corporate culture. Here are the challenges you might face when adjusting to corporate culture when renting office space following the pandemic crisis:
Recruitment: It will be a challenge to attract new talents, but the virtual world can decrease the burden of hiring new employees. Final face-to-face interviews are still possible in office buildings following the health protocols, such as installing hard, transparent plastic dividers between the interviewers and the job applicants.
Office Design: Designing and modifying existing workspaces can be difficult. Supporting the established culture and following the new health and safety protocols poses a challenge to everyone. For this reason, your architect and interior designer should work together to come up with the best solution designed for your business needs.
Co-Working: While co-working has been a trend and major contributory factor to the office market recovery, the new health protocols that accompany COVID-19 may have an adverse effect on co-working businesses. Co-working companies may diminish following the pandemic, so venturing into this work setting is not advised.
Renting office spaces nowadays can be more challenging than ever. All future tenants must comply with existing health protocols, like ensuring social distancing and wearing of personal protective equipment, like face masks. Business owners would likely need to rent additional office spaces and make the necessary corporate culture adjustments to be productive and realize business goals. Let us know if we can help you find new office space. Contact us today!
Deciding on offices to rent is an important part of running a business because the legitimacy and professionalism of the brand can depend on the appearance and functionality of the office. It’ll be challenging for businesses to haul in clients and employees if their offices look unkempt or don’t have any amenities.
If you’re having a hard time finding offices to rent and can’t get the help of a tenant rep in out of the way locations like office space Oxford and need to do it yourself, this article can help. As long as you know what factors to consider, you should be able to find offices to rent that suit your budget and helps your business succeed.
Here’s how you can find offices to rent in your area:
1. Know How Much Space You Need
Contrary to popular belief, appearance shouldn’t be one of your first considerations when finding an office. For you to be fruitful in your search, you need to start by determining how much space you need.
One good rule of thumb to follow is to ensure that you have about 150 square feet for every employee. This space is sufficient for your employees to move around and utilize several pieces of equipment at work. Use our office space calculator to help determine how much space you need.
2. Determine Your Budget
Finding the perfect office for your business doesn’t mean you’ll need to spend your entire business budget on it. If you want your business to thrive for years, it’s essential that you determine and stick to a budget when finding an office to rent.
Make sure to consider the following when determining your budget:
Determine the average price per square foot
Add common area maintenance fees
Don’t forget to include utilities
Any NNN charges such as taxes, inusrance and maintenance
3. Consider The Location Of Your Employees
Your employees play a vital role in the success of your business. Without them, it’ll be challenging for you to oversee different areas of your business and ensure that your business continues to thrive in the long run.
When finding offices to rent in your area, don’t forget to consider the location of your employees. Ideally, you should rent an office that is convenient for your employees to travel to or is located near their residences. Doing so allows your business to retain and maximize the best talents.
4. Ask Recommendations From Trusted Sources About Agents
You can always work with agents, aka tenant reps, to help you find offices to rent in your area. There are many agents offering their services today. Do you know whom to choose? Fortunately, asking for recommendations from friends who have done this and relying on trusted resources, like OfficeFinder, can help.
Hiring agents will make it easier for you to find offices to rent in your area as these individuals have years of experience in the local real estate market, which means that they can suggest properties you never knew existed. They can also recommend the best locations convenient for your employees and customers.
5. Pay Attention To The Landlord
The landlord you choose to work with can significantly affect your life as an entrepreneur and the productivity of your employees in the long run. You’ll likely experience stress when your landlord requires you to pay hundreds of dollars just to fix one broken light bulb in your office.
The attitude of the landlord can influence the value you can get from your rent, which is why you should exert time and effort to know more about the landlord you’re eyeing to work with. You can do this by talking to some tenants of the building. The information you can get from these individuals will help you assess whether the landlord is professional and fair to their tenants or not.
6. Do Your Best To Negotiate
Money is important in every business, especially when you’re still starting. It’ll be challenging for the business to thrive and succeed if you eventually ran out of finances after a few years of operating.
For you to find offices to rent in your area, make sure to consider the price and do your best to negotiate. If you’ve seen an ad about an office lease that costs $4,000 a month, don’t immediately sign the contract. Set an appointment with the landlord and negotiate the rent down at least 5% below the listed price. You’ll be surprised how many landlords are willing to negotiate and accept lesser fees for their spaces. Especially now with the pandemic slowing business down.
There are countless offices available worldwide. Regardless of the nature of your business and the audience you want to engage in, you’ll be able to choose from several options. Find out more about the leasing process.
But for you to find the best office for your business, it’s best if you start your search early and use the services of a tenant rep, like the ones at OfficeFinder, if you can. Contact us today if you would like some assistance. There is no cost to our service or the services of our tenant reps.
It is estimated that approximately 56% of the jobs in the US are compatible with remote work. Global Workplace Analytics project that 25-30% of the workforce will be working remotely, most of the week, by the end of 2021. The pandemic has created some new norms for working that are expected to last. The question is, will working remotely work for you and your company even after the panedmic subsides? There are a number of considerations that need to be taken into account in making the decsion on whether or not to maintain an office. What things should you consider?
Is your home environment suitable for working remotely?
While it’s great to save that extra travel time to and from work, is your home working environment conducive to productivity? Who is at home during the day? Where in your home do you work? We all love spending time with our family (well, maybe not all the time) but how much are you going to be interrupted at home? As we know, it’s impossible to plan for all interruptions from Wi-Fi to plumbing issues to your elderly neighbor needing to borrow an egg for the cake they are baking. What you need to consider is, are you going to be more productive in an office, even if it is more convenient working from home. The pandemic has put an extra burden on working parents, especially those with more than one child. Many schools have reopened and yet most children have continued their learning online or virtually. This means that many parents have now had to balance their workload with playing teacher (creating a renewed respect for teachers that they rightfully deserve). Being physically in an office means that there are fewer opportunities for you to be interrupted, and, if you can increase your productivity, then you may be able to clock off early and better manage your responsibilities at home.
Are you starting a business?
The majority of businesses have been adversely affected by Covid-19, many closing down, but some new businesses have been innovative and thrived. If you are hoping to be one of those, then working from home may not be the best option. Are you going to be happy with people coming into your home, is it even going to be possible? Renting a new space is going to be less expensive than usual, given the oversupply of space. Most new businesses involve a lot of meetings, hiring staff, receiving goods from suppliers, and pitching to investors or clients. Consider a co-working space or renting office space monthly to cater to some of the dynamics that may come with starting a new business.
It can be quick and painless to register your new gig with many companies now providing this service. The pros at Fatstacksblog have screened the best companies for this, check out their review. Most new businesses involve a lot of meetings, hiring staff, receiving goods from suppliers, and pitching to investors or clients. Consider a co-working space or renting office space monthly to cater to some of the dynamics that may come with starting a new business.
Being social is important for physical and mental health
Much higher rates of anxiety and depression have been reported this year and many clinical psychologists have attributed this to isolation and the lack of human-to-human interaction not just in working remotely, but in our lives in general. Other negative effects of isolation have been lethargy and the so-called “zoom- fatigue” from too many online meetings. When you are considering working from home, it’s important to think about how much less you are going to socialize with others because of this. It is amazing what comes from water cooler conversations. Then think about all the meetings, coffee breaks, and small talk you have when you are in the office. All of these tiny interactions and adverse health effects add up. Taking this into consideration, healthier and happier workers are going to be more effective, confident, and creative in their job. It may be worth working in an office and being a better working version of yourself.
How Much Office Space?
If you decide to return to the office, working remotely is still an option. There is nothing that says this is an all or nothing decision. The big question is how much office space will you need and where do you need it? There are a number of options. Understanting the Agile Workplace concept is important. The concept is activity-based working space and making the work space flexible. It is an office hoteling reservation technique or set up in a workplace. It is a way of utilizing a work area more efficiently, utilizing non-assigned seating arrangement and desk-sharing to maximize and creating collaborative spaces. There are many companies that have taken this to heart even before the pandemic.
Many companies are now choosing to take advantage of using executive suites or coworking space as a means of providing flexible workspace for their employees. They do not all have to be located in the same place, but can be spread around for the conveniece of employees.
The whole world has had to embrace working remotely. It was a no-brainer, no-choice decision. Technology allows us to work from wherever we are. Once the pandemic subsides, it may not always the best option for everyone. For many, it may be their personal circumstances, such as being a parent, the number of children they may have, and if they are starting a new business. there are many considerations in deciding the level of working remotely that you choose. As we mentioned, there can be some negative mental health consequences from working remotely, too, For people considering working from home or thinking about going back to the office, assess your home environment to conclude if it is condusive to productivity and if it is going to allow you to be the healthiest and most productive version of yourself.
If you need help finding office space,, whether conventional or flexible space, we can help. Contact us today for a no-obligation discussion on how we can help.
Setting up an office is quite a task. From deciding the location to furnishing the office, it is time-consuming and requires a lot of effort. In addition to this, moving your office to a new area is labor-intensive.
This task is best left to the experts. If you are moving to a new office, consider this office moving checklist pdf to prepare you for the move.
When setting up an office, you have the option to buy, rent, or lease office space. If you are considering these options, it is always best to get a professional on your team to make sure you avoid any costly mistakes. Each of these choices has advantages as well as disadvantages.
Buying Office Space
Buying a property requires capital. Most small to medium sized businesses lack the resources to purchase office space or they choose to use their capital to grow thier businesses. However, for larger companies and corporations, buying an office space is an investment many choose to make.
Mortgage payments that will not increase.
Mortgage payments add to equity.
Appreciation over the long term.
You can rent it out excess office space and benefit from an additional source of income.
Buying requires a large amount of capital investment.
Opportunity cost of that capital investment.
Difficult to scale up in case of an expanding business.
You are responsible for repairs and maintenance, taxes and insurance.
Renting Office Space
In renting office space, it is usually a shorter-term period. You have the option to rent the space on a month-to-month basis or for a year or two. As with any contract for space, make sure to review the agreement thoroughly.
Allows for more flexibility in length of term.
Businesses have the option to relocate according to their needs.
Renting does not require a large investment.
The money is not tied up in the real estate and can be invested in the business in another way.
Monthly payments will increase over time with renewals.
Landlord may choose not to renew forcing you to move.
Leasing Office Space
Leasing office space is for a longer term period. Usually 2 – 10 years.
According to Statista.com, tech companies prefer leasing instead of buying a commercial property. Despite COVID-19 hampering business growth, tech companies were able to lease about 1.2 million square feet in the United States alone.
Monthly rental payments will be consistant for a longer period than renting office space.
Less capital is needed to lease office space than if you were to buy it.
The landlord is typically responsible for repair and maintenance of your office.
Leasing a property offers tax deductions.
At the end of the leasing period, you have the option to leave or renew the contract. So it offers some growth flexibility.
If you renew a lease, the terms of the contract may change, and rent may increase.
You have to comply with the requirements of the landlord.
Deciding on buying, renting, or leasing a property, is a big decision. A company’s business goals and growth prospects should be cinsidereed in making a suitable choice. In addition to this, the location of the office, the terms of a contract, the duration of renting/leasing, requirements of your employee, facilities, and other factors must be considered. Hence, you should take your time in deciding.
it is always best to get a commercial real estate professional on your team when making the buy, rent, or lease office space decsion to make sure you avoid any costly mistakes. This is the type of work they do day in and day out. They know what they are doing and represent you. The biggest mistake you can make is not having a professional on your team! Find one here.
Finding a quality rental property, whether commercial or residential, can be tedious and time-consuming. This might be caused by the broad range of choices available, the prices, or the quality of these rental properties being different. So, what should you do to find the perfect rental property?
If this is your concern, we’ve got you covered. Here are some tips that you should consider when searching for your next rental property:
Work with an Experienced Buyer Broker
There is no reason not to. It won’t cost you anything. In fact, it will save you from making costly mistakes. They do this day in and day out. They do not get paid until you get what you want. They are on your side. Listing agents are solely responsible to the seller, not matter what they tell you. You’ll find an experienced buyer broker by working with top agencies, such as Kuba’s company.
Check the following advantages of hiring a buyer broker:
Buyer Representation: While many property buyers are working directly with listing agents to find their next rental property, they’re only middle players. Listing agents connect buyers with rental properties, but are far more invested in safeguarding the seller’s interest because they receive a commission based on the property’s sale price. Hiring a buyer broker is a good idea to protect your best interest and close the best deal for you.
Powerful Negotiators: Place the financial future of your investment on the hands of a qualified buyer broker once you have found the perfect rental property. Buyer brokers understand price negotiations as they provide advice on how to make the best offer and what factors to consider when buying a rental property.
Know What to Look For: A buyer broker can help you find the right property and give honest advice about your property prospects. It will avoid impulsive buying, so you can get the best terms for your prospective rental property.
Prepared for the Challenges: Make your rental property buying experience smoother, as a buyer broker can manage the minute details, from inspections to appraisals. Overcome all hurdles of the process to close the deal faster.
Closely Examine The Local Rental Regulations
Before you even buy a rental property, you need to familiarize yourself with the local rental regulations. But to do this, it’s best to have help from reliable and licensed professionals, such as those you can find at Rooftop Real Estate Management. This is especially important if this is your first time purchasing a rental property. Doing this entails going through the tenant security deposits, laws and regulations for property registration, rent control, evictions, tenant security deposits, and a lot more.
After understanding the local rental regulations, you’ll be more than capable of running a successful rental property venture while simultaneously avoiding any legal disagreements.
Make Sure to Separate Your Business and Personal Finances
One common error many new rental property owners make is investing personal funds into the business venture. However, this isn’t advisable as it opens you up to the possibility of your personal money being used to settle your business liabilities.
Moreover, mixing up your business and personal finances might also result in tax complications, further complicating your investment into the business.
Place the Down Payment
When investing in a rental property, you need to determine how much down payment you’ll be required to pay. This value is typically between 20% to 30% of the property’s value, and you can get its financing either through a personal loan or bank financing.
When saving for the down payment, here are some useful tips that’ll enable you to have the money in the required timeline:
Getting a second job.
Reducing your rent.
Opening an automatic savings deposit.
Cutting off unnecessary living expenses.
Settling all present debts.
Have a Long-Term Investing Strategy
Real estate is a long-term investment. Therefore, to guarantee its success, you need to approach this venture with a long-term strategy. The best way you can attain this is by having a particular goal and devoting a lot more time to fully understanding the real estate market. As you do this, it’s essential always to be realistic and to base your expectations on your financial capabilities.
Here are a couple of useful questions that can help you develop a long-term investment strategy:
Should you buy multiple rental properties?
How much should you pay for the rental property?
What property types and investment strategies should you consider?
Does the real estate investment tie-up with your retirement plan?
Once you answer all these questions, you’ll be in a great position to put in place a great plan to purchase the rental property.
Be Wary of High-Interest Rates
If you take out a loan to buy your first real estate property, it’s wise to be cautious of the high-interest rate charged by lenders. Usually, this rate lies between 5% to 7.5%, which is much higher than the mortgage rate.
Lenders usually do this since you’re far more likely to default on this payment, unlike with your home. Therefore, the higher the interest rate compensates for, the greater risk they’re taking.
Ask Other Landlords for Advice
In any business venture, you choose to partake in, seeking advice from those already experienced in the industry is essential. This means that as you look for a real estate property, make sure to consult other landlords to get useful insights from their past experiences. As you do this, also take into account their investment bias, that is, the landlord’s purchasing strategy, experiences, and ultimate objective.
By talking to other landlords, you also get useful advice on how to identify hood tenants, which is a crucial skill for your peace of mind as a property owner. Another alternative to get these useful insights is to become a member of a local landlord association. With guidance from other experienced landlords, you’ll be able to avoid mistakes. For example, you get to understand why hiring a property management company is recommended.
Budget for Vacancies
A rental property won’t always have tenants. This means there are months when one or several units are vacant, which will cost you money. Therefore, as you search for the ideal rental property, make sure not to overlook this factor.
The vacancy rates differ from one market to another. Low-demand rental properties have a greater vacancy rate of more than 20%, while that of the highly demanded areas is less than 2%. With that said, it’s always advisable to consult with other landlords in the area to get a rough estimate of the vacancy rate. By doing this, you’ll be able to determine whether the investment in a specific rental property is worthwhile.
Identify Your Property Expenses
One thing that’s standard across all rental property investments is that they accrue expenses over time. These expenses can either be monthly or annually, but you should also be well prepared for an unexpected expense that might occur.
The possible expenses you might need to settle are:
Unforeseen and anticipated maintenance and repair expenses.
Property taxes that are owed to the state, which depends on the county, town, or state the rental property is found.
Calculate The Margin
Setting the margin rate of return is vital since it determines whether you’ll generate the desired profit. You need to set the margin rate at 10% and set the maintenance cost at around 1% of the property’s value. This means for a property valued at $500,000, the maintenance cost should be $5,000.
In addition, you need to consider other expenses such as possible property taxes, monthly expenses, including janitorial, landscaping and pest control, as well as homeowner’s association fees.
Examine If There Are Short-Term Rental Restrictions
The increased popularity of short-term property rentals for residential properties has seen some neighborhoods putting in place short-term rental restrictions. For example, some homeowner’s associations put in restrictions that forbid the rental of houses for less than 30 days. Therefore, you should confirm whether there are such restrictions on a property you’re planning to buy.
Get an Inspection
You must never overlook the significance of an inspection. Making sure the property is inspected is essential as it saves you money and time since you get to identify if there are any issues with the property. If you already purchased the property without getting it inspected, this leaves you with a huge loss that can amount to thousands of dollars.
Therefore, make sure the rental property is inspected before you make the purchase. If any issues are detected, this improves your bargaining power since you’ll need to do the repairs independently. Alternatively, you can ask the current owners to do the repairs before making the purchase.
If you want to get a better picture of the property that you want to invest in, pre-qualification is more than necessary. But for you to get pre-qualified, you need to know several aspects, including the following:
Ensure a low debt-to-income ratio.
Have liquid cash to pay the down payment.
Have a credit score that’s at least 680, but a score of 740 or higher is better.
Access to cash that can settle at least six months’ expenses.
Look into the Neighborhood
Even after finding the perfect rental property, you need to make sure to confirm that it’s located in an ideal neighborhood. This means considering essential factors such as the rental property’s access to public transportation, crime rates, and available amenities.
You should buy the rental property once you’re satisfied that it’s in excellent condition and also the neighborhood it’s located in.
Make Sure Your Credit Is in Check
When searching for your next rental property, your credit rating is crucial. If you’ve got a great credit score, you enjoy a better negotiating power and higher chances of getting access to credit needed to finance buying the rental property.
In contrast, if you don’t have a great credit rating, you’ll find it a lot harder to find a great rental property since the lenders won’t be willing to offer you the needed finance. Therefore, you’ll need to finance the property’s purchase either by using your savings or having to pay high-interest rates if one lender is willing to take the risk with you.
Calculate the Property’s Operating Expenses
Knowing the operating expenses is crucial as this will also guide you to determine how much rent should be paid for each unit. In most cases, the operating expenses range between 35% to 80% of the total operating income. This means that if the total rental income paid by your tenants is $5,000, your monthly operating expenses should be approximately $2,000.
The search for an appropriate rental property is never easy. However, after reading this article, you now know some useful tips to consider that’ll help you find the perfect rental property to generate additional income.
Like most real estate sectors, the rental market for commercial office space has increased in cost significantly since 2018. Based on data gathered during the second quarter of the year, the asking rents rose to 3.4 percent per year to $25.71 per square foot. Yet despite the increase, small businesses still opt to rent office space instead of buying their own buildings for a lot of reasons. These include minimal financial commitment and tax deduction. They can also provide more flexibility for expansion. Renting an office space vs remote working can be beneficial for your business, especially if you know how to choose the right location. But aside from looking for a good venue for the operation of your business, here are some tips that you need to consider if you want to rent your office space.
Consider Your Budget
Before signing the lease for your office, determine whether you can afford the big move. You need to ask yourself and talk to your financial advisers to ask if the time is right for your company to have a larger space. When choosing the office, you must think about how the new office rental expenses will affect your bottom line. Think about your other expenses like the furniture to purchase or rent, and other necessities including your small business insurance, utilities, and Internet services. In some cases, an executive suite or coworking space may be a better answer than going out on your own. Typically, they are furnished and you know the total cost each month without having to pay other expenses such as utilities.
Think About Your Staff
If you are running a small business with a few team members, you need to look for a space that can fit everyone in. The area needs to be spacious enough for the desks of each member of the team. If you are still planning to expand, you must allocate a few extra spaces for future employees. The office rental must also be conducive to the health and safety of your staff. It should be located in a safe spot where access to hospitals, police and fire stations is readily available.
Study The Lease Thoroughly
Always have a clear idea about what you will need in the space. If possible, consider taking several trips to different locations to know if the area has the right vibe for your business. Your tenant rep must also know how to negotiate with the landlord to give you the best discounts. Make sure they are experienced, like the ones we have at OfficeFinder. Thoroughly read and analyze the contract before signing the papers. The document must point out all the provisions that both you and your landlord had agreed upon. Make sure to thoroughly review the rules and relgulatons, too. Otherwise, you may not notice the necessary rules that could affect your business operation.
The process of renting out an office space for your business can be tedious and time consuming. That is why having a tenant representative on your side is so important. You need to think and consider a lot of things before finalizing the deal. Your tenant rep will make sure that you don’t make any costly mistakes and consider all the necessesary factors. But as long as you and the owner can come to agreement when making decisions, this will set a solid contract that will last for years to come.
By 2020, it is estimated that approximately 27 million Americans will leave the workforce in favor of self-employment, according to estimations in the 2018 FreshBooks report.
The penchant for self-employment and entrepreneurial spirit that is alive in the country is not necessarily new information. The country ranked first on the 2018 Global Entrepreneurship and Development Index (GEDI), and cities across America are quickly becoming hotbeds for business innovation and startups. With over 24 million Americans contemplating self-employment in 2019, one key consideration for them will be how they can best be prepared for this professional leap. Taking a few steps before starting your own business sets you up for success, and helps the incorporation period of your business run much more smoothly. It includes securing the right office space, a dedicated workforce and everything in between.
Define Your Target Market And Competition
Creating a customer profile helps you define who your potential customers will be so that you can personalize your communications, location and even packaging according to what they prefer or demand. To do this, you need to conduct thorough market research and seek information on competing businesses in the industry. Take note of current trends in the industry, such as social media communication and advertising trends or any new complimentary service being offered by other companies already operating in the market. Getting to know your competition means you can capitalize on their shortcomings, providing the customers with what they seek. It also helps you define your boundaries: do you have enough funds and human resources to fill the need uncovered by the market research? More importantly, how can you make your offering unique and notable?
Decide On Your Location – Brick And Mortar, Ecommerce Or Both?
Now that you know who and what you wish to be selling, it is time to answer the questions of where and how. The first question to address is whether you want to sell in-store or online or both. Thanks to technology and the embracing of the internet, most businesses now have an online presence in addition to their brick and mortar locations. When choosing a location, look at factors such as closeness to your target market, availability of your supply, and ease of distribution. Whether you intend to sell online or in-store will also determine the kind of premises you secure; whether it is intended for warehouse storage and distribution or customer browsing and storefront as well. OfficeFinder can help you find the right location.
Back Your Plans With The Funds
Once you have decided on the target market (who) and the good/services to be offered (what), it is time to answer the question of how. This is where financing comes in. To kick-start your plans for your own business, you will need some degree of startup capital for the purchase/leasing of business premises, stock, machinery and promotional activities. Around 77 percent of small business owners use their personal funds to start their business, while 16 percent rely on borrowing from friends or family members.
Alternatively, you can opt to apply for a bank loan or credit like 24 percent of other business owners do, according to GuidantFinancial. The average in business loans taken is USD$72,2771, with 23 percent of owners borrowing more than that. If you do intend on financing your business with the help of loans and other credit, you should also check your credit report to ensure it is in optimal shape. The credit report of business owners (particularly small business owners) is one of the go-to things lenders consider in your application, so now would be the perfect time to boost your score or address any discrepancies in your financial past. Find more information here.
Create A Mock-Up
If you’re going to apply for a business loan or secure investor backing, you will need to pitch your idea, and a mock-up can help you sell your vision. This means creating a business plan for your financing process, which should detail your product/service, your target market, and your plans to meet the needs of the said market. Plan execution will include a marketing and sales plan, along with financial projections of your revenue and costs and your projected cash flow. It is important that you pay particular attention to your cash flow, since lenders will be taking note of cash management strategies. Finally, to round out your business presentation, you can create a demo business website and sample business cards or adverts.
Making the decision to head into a self-employment business for yourself can be fraught with many decisions in the beginning. However, the trick is to approach it systematically and carefully taking into consideration the essential decisions before you kick-start your venture.