As a property owner, you may have unused space that has the potential to bring in extra income.
With the Hollywood, Florida, office and retail markets staying tight and growing, it creates an ideal time to make the jump. Before advertising your space, consider the following.
1. Research types of renters
The type of space you have factors into who may want to lease it from you. Key factors that will determine if the space works include amenities, facilities and square footage. If you have a smaller space, you may want to consider hosting the space for events or as conference room space. Remember that different people have different needs. If your property has limited parking or no kitchen, you may have to find a more niche tenant.
2. Consider the risk
While the thought of bringing in some extra money with limited effort sounds nearly perfect, it comes with potential risks. Once you have a tenant, you may take on commercial liability risks, such as a potential injury, property damage or theft. You also need to verify that leasing stays within legal guidelines.
3. Calculate the cost
Depending on the space, you may have potential renters who want to change the space. You have to decide how much you want to accommodate those requests, such as adding a wall or installing a secondary bathroom. Leasing a space also comes with added costs, such as higher utility bills or hiring an office cleaner.
While you may have space that could benefit others, you also have to consider if leasing it benefits you. If things change down the road, you may not want to get stuck in a long-term lease agreement.