As a commercial landlord, you can choose to lease your property to one company, or split the plot into multiple units and rent it to several businesses in need of smaller spaces. Multi-tenant investments can generate more income, achieve a good return on investment and protect against financial loss.
Here we look at some of the benefits of multi-tenant leases in Gold Coast commercial property.
With multiple tenants occupying your property, even if one defaults on rent (and assuming the others are paying on time) your property is still generating cash flow. It also means that if one unit is vacant, you don't have to find another way to fund repayments, as the other tenants will still be making their rent payments. The remaining tenants will also be covering at least a portion of utilities and other costs associated with the property, minimising the dent in your finances.
By splitting one property into several separate units, you protect yourself from a completely vacant property. In terms of physical security, this has some benefits in that you still have other tenants in there keeping an eye on any issues such as leaks or maintenance that may arise. It also means you protect yourself against changes in the economy. By relying on one tenant, you're at risk if their industry begins to suffer or their business slows for any other reason. A space that is able to be used by various types of businesses all at once can help you find tenants if one industry suffers.
Having multiple tenants within one property cuts down on some of the admin involved in commercial property management. If you have multiple properties, you have to organise maintenance and services for each one individually. By grouping your tenants together, you can do your 'property admin' once and satisfy a number of your tenants. Similarly, if you want to change or modify something like an internet service provider, you only have to arrange for the change to happen to one property – keeping your costs down and your time available.
Whatever kind of commercial property you're interested in, talk to our team of experts at Ray White Surfers Paradise to find out what's available. We can help you find the property, source tenants and manage the day-to-day running.