Curious as to who is selling up or downsizing portfolio purely due to RR bill?
Anyone actually scaling up?
I have stable long term tenants and not seriously thinking of getting rid of stock, but it does cross my mind.
Commercial….now that’s something I might delve into. A concern is long empty periods and getting the right type/location as high street is dying.
To answer part of your query, I have always had a mix of commercial/private tenants over 40 years. If you are thinking of the commercial route then what I have done that worked for me is to find a town with a lot to offer so there is a stream of locals and tourists. I chose High Streets for that reason, also a property with a flat above, separately accessed so you have two income streams hopefully. I chose Lewes East Sussex and Cowes Isle of Wight, these days I might look at Louth Lincolnshire, but there are many and you do not need to live nearby. The lease needs to be fully repairing and check your potential tenants financial history carefully. I have another flat which is adapted for disabled, wet room, proper access etc, quite sought after and generally reliable tenants. Look outside the box a bit I suppose is what I have done but without realising it. Good luck!
I have as much commercial as homes . Commercial great .no voids . Simply less hassle for me
Many thanks you for the very insightful opinion. Considering further afield is not something ive ever really done as ive always liked to keep things on my doorstep, mainly from a management and maintenance perspective, but i now a want to be much less hands-on so this would fit in with my plans.
Any tips on businesses to avoid?
any tips? so less hassle than residential? i imagine a good solicitor is needed for contracts?
Keep the price below the nearby shops .I have never used a solicitor. I check the potential out at their own home. one shop i have had for about 40 years has only had 4 tenants (one for 20 years) Use your own judgement as to whether they are business like . Easy for me as I have been a shop keeper, so know what to look for
Presently good businesses are Cafes , Barbers . tattooists… Card shops are a thing of the past along with fruit and veg, butchers. etc Times change . Spending habits also
We also have both residential and commercial, the portfolio is mostly staying the same despite the challenges. On the commercial side, it’s been a very varied experience. We have had a few bad tenants and long voids which has been rather costly (and that’s on a fairly busy London high street), so it’s difficult to say whether it’s been less hassle compared to residential. It is good to diversify the portfolio so I’d go for it, although as others have said, lots of due diligence. All the best.