Four key factors to consider when leasing your building

Over the years about 40% of land lords had found themselves in situations of law suits from their tenants, which could be as a result of ground rent scandal, maintenance problems, overdue ground rent payment or other problem ensued either from the part of the land lord or the tenant. In order to prevent futuristic problems, it is very important to consider a few factors when choosing your tenants and other salient factors. A few of these factors includes;

Pricing

The price you will be leasing your building should be one of the first things to consider when leasing your building. Be sure to calculate all cost related to the building before arrive at a valid pricing to prevent futuristic issues that could be owing to economic factors.

Your Tenant

Be sure to examine your tenant. Although not necessary but it is important to answer certain moral questions about your tenants. Obviously when you eventually lease it out to them, all kinds of activities would be carried out in the building built IN YOUR NAME. Peradventure there are future cases involving the law enforcements, you are definitely going to be questioned. It is quite important to some extent; to know your tenant.

Proposed Contract

Properly draft your terms and conditions in simple English to prevent ambiguity. Clearly state, your pricing in the contract, the number of years you will be leasing, if there will be increment over the year- clearly state it to avoid law suits and situations of ground rent scandal and most importantly, include the fact that you are not selling or permanently transferring ownership.

Maintenance

The cost of maintain the building before leasing and after leasing should be considered. All these costs needs to be included in your pricing beforehand based on the fact that there are lots of certain loopholes you may be called upon to fix; a broken fence for example. You need to consider these unforeseen maintenance cost and prepare ahead for them.