Whether you own a residential property that you rent out to long-term tenants or a commercial property where businesses make their homes, you may occasionally encounter situations where those tenants want to upgrade the property in some way. These changes could be big or small, but there's a lot to consider before allowing them to take that step.
You may want to think about the following issues before you say "yes" or "no" to a tenant's request:
First and foremost, you will want to think about the request itself. Does your tenant want to build a porch or just instal a new shelf on their own? If you let them do either one on their own dime, that might come with some liability issues, and if you would be asked to pay for it, you'll certainly want to think about whether such an upgrade is worth it to you.
Along similar lines, you need to keep in mind that even though a tenant occupies it, this is your property and any changes they want to make to it might impact your bottom line in ways they don't realise. For that reason, if you're on the fence about whether the changes are a good idea, you need to do research and figure out if you feel good about such a change.
If you would be asked to take on the cost of the changes yourself – either in terms of additional insurance premiums, the cost of the changes themselves or both – you need to crunch the numbers. If the changes mean you can charge more for rent, they might be worth it.
As owner of the property, you are of course in your rights to turn down any such request you receive, but there may be fallout. For instance, a current tenant may unexpectedly choose to move out when their lease is up. While that may not be the end of the world, it's certainly something that could set you back temporarily.
When you decide it's time to broaden your horizons as a commercial property owner, it's best to get the experts on your side. At Ray White Surfers Paradise, we can help you find the perfect commercial property for your needs and guide you through the sales process at every step. Get in touch with us today to learn more about what our years of experience will mean for you.
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