Whether you’re first starting a business or looking to expand, finding the necessary capital can sometimes be a challenge. If you don’t want to mortgage your home or take out a loan that will be expensive to pay back, becoming a commercial landlord can be a great way to gradually grow your business.
While being a landlord does come with certain responsibilities to your tenants, it can also help you reduce your own costs. If you’ve got extra space in your commercial office, consider renting it out. And if you are in the market for a new building, consider finding one that can accommodate your business with extra room you can rent. Not only will this help you afford a bigger space, it will also pay for some of your loan and utility costs, allowing you to put more of your business’s revenue back into growing your business. It also creates the flexibility of having more space as your business expands, since you can gradually phase out tenants and begin using that space yourself.
Providing Tenants with Business Amenities
In some cases, you may find a building that has already been subdivided into multiple separate offices that are completely self-contained. In other setups, you may be responsible for maintaining shared facilities like restrooms or a kitchen, which is attractive to tenants since it’s one less thing they have to worry about. If you really want to attract tenants and charge a premium, consider offering amenities like access to conference rooms and copy machines.
Renting Individual Stations
Even in a smaller space that’s not subdivided for multiple businesses, it’s still possible to attract renters and bring in additional income. Plenty of professionals who don’t really need their own offices are willing to pay well to use yours. Maybe you have an extra office you don’t really need, or space for one or two extra workstations you can rent out.
In some cases, you may find tenants who aren’t in need of a permanent office to use every day, but instead are looking for a satellite office to do business from when they’re in town to meet clients. This could mean they only need the space one or two days per week, and might even be open to the idea of sharing their station with other renters. Offering stations that are fully set up with a phone, laptop docking station, and even basic office supplies will appeal to these types of renters, and renting to two or three people who each pay for one or two days a week can generate even more revenue than renting to a single person. Or, if you find one tenant like this who is willing to pay more to not share, then you’ve got a part-time tenant who is paying a full-time price.