Long-term leases are typically the ideal choice for landlords. They help lock in tenants for longer, reducing the risk of having to fill occupancies on short notice. However, if you’re finding it difficult to find tenants to sign a long-term lease, you may consider other options.
There are certain tenants out there who still desire long-term leases and when you partner with PMI, we’ll work hard to help you find the ideal tenants for your property. But, in some markets, you may opt to offer a flexible lease or break clause to attract a wider array of potential tenants.
There are many start-up businesses that are looking for an option that provides a little more flexibility, in case they expand fast or fail. Because of the uncertainty associated with launching a new business, they may not want to lock into something permanent. But start-ups aren’t the only ones who might prefer a lighter commitment. Some companies want it as a safety net in case they’re not accurate in their future projections.
Flexible leases typically offer shorter durations, allowing the tenant to avoid a long-term commitment. Flexible leases also tend to be less involved. A break clause can be added to a lease. It’s typically more of a bonus for tenants than landlords since it allows the tenant out of the lease. However, keep in mind, it also allows the landlord to break the lease. With these lease options, you can charge a little more for rent, as you may have to make up for more vacancies.
A thorough, binding lease is essential in the world of rental investments. But there may be times when you feel it’s best to offer flexibility. If so, make sure you talk with an expert regarding the lease and how to ensure the right verbiage is included.
We encourage you to reach out to us at PMI. We have years of experience representing commercial landlords and can make sure your lease covers all of the important details. We’ll also help you attract the right tenants to your property. Check out our website to learn more: .
