How to Choose the Best Tenant for Your Investment Property

escalators inside shopping centre

When you own commercial or retail property in Queensland, the income you get from your tenants is critical to the result you want as an investor.  For that reason, every lease and its income profile should be optimised to the market and what is possible given local vacancy trends, supply and demand, and property enquiry.  Tenant selection will also be part of that.

Every tenant should be chosen with due regard to income growth and stability.  Are they a clear match for your property?  It is the case that some tenants are better than others.  Grow your tenant mix in your property through selectivity over time.

Brisbane is part of the eastern seaboard of Australia and is a key point of entry for goods and containers. That is unlikely to change given the proximity of Brisbane to Asia and the Pacific. The real estate in Brisbane is cheaper than Sydney or Melbourne, and on that basis freight businesses and logistics firms can build a base of operations more economically than that in the other capital cities further south.

Where Do You Start Investing?

So what can you do if you are to be investing in Brisbane property? To help your income grow, it is wise to speak to your solicitor and your leasing or managing agent about a lease and rent review strategy that can work for the property and the tenants over the coming years.  A good property investment is something that is shaped over time.

Don’t accept some ‘cheap generic lease’ as part of your property lease strategy.  Create a lease with the help of your solicitor that can build your real estate investment results.

A solicitor prepared lease offers alternatives in income generation from things such as:

  1. Rent review timing
  2. Type of rent
  3. Base rent at lease commencement
  4. Method of rent review
  5. Recovery of outgoings during the lease
  6. Option for further lease terms
  7. Renovation strategies for tenant compliance
  8. Make good terms and conditions at the end of lease

These alternatives when considered and placed into a property investment allow the property owner to go to the next level.  Using the advice of your property solicitor and the comments of an experienced real estate agent will help the property planning process.  A good property income and performance does not happen as a result of luck; it is a planned event.

Need help with investment property in Brisbane? You can contact John Highman direct on 0417221108.

Why Lease Enhancement is Important in Commercial Real Estate in Brisbane

shopping mall and retail shops

Investors in Brisbane today have a wide variety of options when it comes to leases and how they will serve the property in an investment sense.  Importantly the lease that an investor uses should be drafted by a solicitor of sound commercial property experience.  Brisbane is a thriving and growing capital city on the eastern seaboard of Australia.  Investments in property are a good thing.

It should be said that a lease of commercial or retail property is not just about the rent; it’s about occupancy, security, investment, improvement, and stability.  When you have a tenant, then the lease takes over in the control sense to cover off on these issues.

brisbane buildings on river
Brisbane Real Estate is very active

Nothing is more troubling than a lease that has been drafted by someone with little local property knowledge and experience.  The reality is a lease should be structured for the property, for the future, and for the location.  Not all properties are the same and on that basis, no lease should be the same.  Not all investors are the same from an investment perspective.  This is where the variables of property use and occupancy become important, and the lease then takes over in the control sense.

A good property solicitor that is acting for a property investor should take into account not just the priorities of the client, but also the elements of the property that need special attention and control over time.  From that point, they can structure a lease that really targets the issues for the property owner.

Proven Property Successes are Important

city buildings on skyline

As a commercial or retail property owner, if are considering listing the property for sale or lease, ask your agent about their successes in the local area with property that is specifically like yours.  Selling or leasing a property is not an experiment in marketing; it is a significant business and investment decision that is supported by strategies and target marketing.  The real estate agent you choose to list and market your property will be critical to the outcomes achieved in several ways.

An experienced real estate agent will know about the following:

  • Existing properties on the market at the moment that will compete with your property
  • The asking rents and prices in the market at the moment on comparable property
  • The supply and demand for space in your area that can impact on the price or rent outcome now and in the future
  • The target market that would be most interested in your property for sale or lease.
  • Marketing methods that work in this property market without wasting time or money
  • They should have an extensive database of existing property enquiry from qualified buyers and tenants as the case may be
  • The agent should know about the existing time on market for properties given the prevailing market conditions
  • The best choice of method of sale or lease that should be applied to your property to get momentum.

Any commercial investment property can sell today or in the future.  The results that you get are driven from your choices today and just how you list your property.  A good real estate agent that knows your area will help with that.