Real estate holdings are popular investments not just for individuals but also for businesses. If your company has a commercial property that it uses for business, you might want to see if you can’t make a profit off of that building or commercial space.
Whether you have moved to other facilities or you simply have a portion of your existing building that you don’t use, renting out some of your commercial property can be a way to generate a secondary stream of income for your business.
Are you allowed to lease just a portion of your property to someone else?
If you own the property, you likely have the right to rent it
If you currently rent, even if it is a rent-to-own situation, your contract with your landlord likely limits your ability to sublet the property to other individuals or businesses. However, if you own the property, you can likely rent a portion or all of it to another business at your own discretion.
Before you take this step, it’s important that you take the right precautions to protect your property and the investments you’ve made in it. Drafting a very specific lease that discusses the use of the space, the parts of the space the tenant has access to and their obligations as a tenant will protect your company from miscommunications and liabilities. For example, you may want to limit how many vehicles your tenant can have in the parking lot or require that they pay their own utilities because you have installed the separate meter for that portion of the property.
Discussing your space and your concerns with an attorney experienced in commercial real estate law can help you decide what inclusions are the most important in your lease and how to best protect your business.
