Friday, August 16, 2013

LaeRoc Income Fund: Leasing Process of Commercial Real Estate

For investors of commercial real estate, it is important to find the right kind of tenant who will be able to make timely payments on a consistent basis and for a long period of time. This helps to keep a steady cash flow for the investor while decreasing the number of vacancies of a particular property.  It is important to consider a number of factors that are involved in creating the lease terms and agreement..

A lease is essentially an agreement that sets out the parameters and guidelines of a business relationship. A proper lease will serve to benefit both parties, but the true test of a good lease is when trouble arises. If the lease was not created correctly, a small problem can easily snowball into a larger one. For those tenants who simply sign whatever lease is handed to them, they may not realize that the lease they are signing works to benefit the property owner. When an issue arises, the tenant may not like what they see in the lease. On the other hand, an experienced tenant may wish to make changes to the lease the will not benefit the property owner at all.

When creating a lease, it is important for the property owner and the potential tenant to be as diplomatic as possible in negotiations. Once both parties are able to understand where the other side is coming from, a true understanding can be reached. This balanced perspective can help to root out any potential problems down the road. LaeRoc Income Fund is based on the West Coast.

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