Commercial for me has much going for it if renting out a shop. office block or commercial industrial unit . Not the same hassle as a private dwelling not the insane legislation . In great demand are small commercial units . Plus for the tenant ,all of mine can claim small business rate relief . Ie no rates at all.. I have had tenants of 20 years . 10 years etc. They do own repairs and alterations . I can think of no downside if you choose location carefully. My first one . bought many years ago returns me its purchase price every 2 and 3/4 years
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That’s very helpful thanks Colin. We’re wondering whether to shift from residential to commercial. Are there any pitfalls with commercial to be wary of at all? You mention being careful about location. What are ideal locations? It’s a whole new area for us so lots of questions! Thanks
Small industrial units are in great demand to rent . Buying them is the hard job as not many for sale. I have just fallen lucky over the years ready to buy quick. Shops are easy to find ,but you have to study the location. Good parking . <no double yellow lines I am in secondary locations still good Choose tenants with their head screwed on . . Good bus. at moment cafes, hairdressers and tatoo ists. .. Fallen by wayside butchers , green grocers. I was in retail and so have a bit of retail knowledge. Some shops got flats above , better for offices tho More important location of shops than houses as a high street can go downhill. The tenant can make a business, do they have a business plan, have they been in business before? Can they afford the stock.. What is the competition nearby . Lot of people think open a business and customers will flock in . It is not like that at all
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I too have held commercial units. My view is the larger the property, the greater the risks. The biggest risk being void periods which can prove longer term & more costly, than you’d be use to in the PRS.
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