Commercial Property Ownership: Considerations For Wannabe Landlords

large buildingIf someone were to raise the subject of potentially investing in property and becoming a landlord, chances are you would assume they meant residential property. There’s a good reason for that, too; rental incomes from residential tenants are good, the buildings easy enough to maintain if you start small and build up, and it’s something that people can do alongside their regular work. More and more people are choosing to invest in property and become a landlord as a means of saving for their retirement.

Of course, there is another type of property investment and rental that is worth considering if your budget is a little more expansive: could you be a commercial landlord? After all, few businesses actually own the properties that they operate from; it’s usually too big a cost for fledgling companies, and they don’t want the hassle of having to run repairs. That means there is a gap in the market for property investors who don’t mind the idea of taking on a project on a larger scale.

What’s Easier: Commercial or Residential?

As you would expect, they each have their pros and cons – and they each have plenty of uniting factors too.

For both types of rental, you’re going to be taking responsibility for the structural integrity of the property. You’re also going to have to deal with legal fees and tenancy agreements.

The major difference between the two is the length of tenancy. If you want to be sure you will have a tenant, then residential letting can be notoriously difficult. Businesses are likely to stick around for longer, so if you don’t want to go through the hassle of changing tenants regularly, it might be the better option for you.

What Kind Of Properties Make Good Commercial Properties?

Literally anything can be a commercial property, but you’re going to want to follow one of two options. You could look to buy an established space in a business park, or you could look to build new.

The latter can be simpler than you might think, provided you’re happy to do your research. You’re going to need to look into zoning laws with local government, follow construction tips such as making the decision to read more at, as well as taking advice on prime sites for development. If you do choose to build, you stand to make a larger profit in the long run – but if you’re looking for short-term yield, small business properties that are already in operation will likely be your best choice.

Is Commercial Letting Viable?

We all know that when the economy struggles, commercial rentals can suffer. As businesses struggle, they close, and landlords can struggle to find new businesses willing to move in.

The same cannot be said for residential letting. In fact, if there’s an a sign of economic trouble on the horizon, as described at, then residential property might be your safest choice. If people lose their homes due to an economic blip or have to move to find work, then there’s always going to be a solid residential market that you can tap into.

Essentially, decide what you want. If you want your investment property to be a short-term gain that can withstand harsh economic conditions, then you might be best off with residential. If you’re thinking big and want to really make a go of developing property, then commercial will be a better choice for you.

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