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Should You Use a Standard Multi-Tenant Commercial Lease

A multi-tenant commercial lease is an excellent investment with great returns if youu2019re willing to carry out the extra work of management and maintenance. UnitConnectu2019s property management software takes care of most managerial tasks and helps you follow up with the maintenance needs.

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Should You Use a Standard Multi-Tenant Commercial Lease

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  1. SHOULD YOU USE A STANDARD MULTI- TENANT COMMERCIAL LEASE

  2. To determine the best lease option for your business, you need to evaluate your investment needs. Some crucial questions to ask yourself before start investing in commercial properties include: What is my investment goal? How involved do I want to be with the properties I own? How high or low is my risk tolerance? What are my wealth objectives?

  3. After you have the answers to these questions sorted out, you need to understand the differences between a single-tenant and a multi- tenant lease and the pros and cons of each. Single-tenant properties only have one tenant to manage, while multi-property owners must manage multiple tenants. Single-tenant properties tend to have longer lease terms. A lease of 10-20 years is not uncommon. Multi-tenant properties have shorter lease terms, such as 3-7 years. Single-tenant properties require minimal capital input, where multi-tenant properties need regular capital input. Single-tenant properties tend to retain their value better where frequent tenant turnover in a multi-tenant property can lead to value loss.

  4. Multi-Tenant Lease Pros Multi-tenant leases have the appealing promise of regular income irrespective of the tenant turnover rate. The landlord can enjoy better returns with less involvement if they agree with the tenants to care for their utility, taxes, and personal maintenance needs. Here are the advantages you’ll enjoy with a multi-tenant lease:

  5. RECEIVE RENT FROM MULTIPLE TENANTS Multi-tenantpropertiesgiveyouthebenefitsof severaltenantspayingrent. Themultiplesourcesof incomereducetheriskoflosingvastamountsof incomeifonetenantvacatestheproperty. Amulti-tenantleaseletsyouhavedifferenttenants withdiverseleasetypesanddurations, whichbuffer shiftingeconomictimes. Thebestpropertytoutilize amulti-tenantleaseisonethathas: Highconsumertraffic Minimalvacancieshistory Excellentmarkettrajectories

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