Commercial- What's allowed?

justintime999

Hi

I've seen commercial with A1 approval. What can I rent it out for?

Need to know so I know if good idea to buy-to-rent or not.

Thanks peeps

phill99

Shops.

Have a look here
http://www.gleeds.com/documents/news/BS_Guide_to_Planning.pdf

lincroft1710

It would only be a good idea to buy as an investment if you can be certain of quickly securing a tenant. Many shops in secondary and tertiary areas remain empty for long periods of time. As owner you would be responsible for business rates etc whilst the shop remained empty.

Savvy_Sue

lincroft1710 wrote: »

It would only be a good idea to buy as an investment if you can be certain of quickly securing a tenant. Many shops in secondary and tertiary areas remain empty for long periods of time. As owner you would be responsible for business rates etc whilst the shop remained empty.

Absolutely, you have only to read threads from people who want to start renting premises to find comments like "you should be able to get a big introductory reduction, landlords are desperate to rent properties out, see if you can get six months rent free and an early break clause."

It doesn't take an economist to see that if all new tenants are haggling for rent free periods and early break clauses, then there's no guarantees for the landlords ...

justintime999

As always sound advice.

It's a BIG BIG BIG risk. I mean I'm putting down most of my savings.

To gamble it all or not to gamble it all. That is the question.

Savvy_Sue

I admit, I'm of a cautious disposition, but can you afford to lose most of your savings if it does go pear-shaped? Do you have any experience of acting as a business landlord (or even a tenant might be better than nothing!)? What's the rental market like for retail properties in that (fairly precise) area? Footfall? Parking? Have you done due diligence on plans for the area?
We've got residents parking schemes breeding across the city, what it's done to retail businesses is scary.

I'm guessing you've seen something at what looks like a bargain price. Why is it being offered that cheap? What's wrong with it? Potentially what could be wrong with it?

I know it's slightly different but we see quite a few threads where someone's seen a business being offered at a really good price, the owners want to sell up and retire, it's a chance that's too good to miss. And the cynics among us start asking questions and suggesting why even that bargain price is heavily over-estimating what the business is worth.

justintime999

Savvy_Sue wrote: »

I admit, I'm of a cautious disposition, but can you afford to lose most of your savings if it does go pear-shaped? Do you have any experience of acting as a business landlord (or even a tenant might be better than nothing!)? What's the rental market like for retail properties in that (fairly precise) area? Footfall? Parking? Have you done due diligence on plans for the area?
We've got residents parking schemes breeding across the city, what it's done to retail businesses is scary.

I'm guessing you've seen something at what looks like a bargain price. Why is it being offered that cheap? What's wrong with it? Potentially what could be wrong with it?

I know it's slightly different but we see quite a few threads where someone's seen a business being offered at a really good price, the owners want to sell up and retire, it's a chance that's too good to miss. And the cynics among us start asking questions and suggesting why even that bargain price is heavily over-estimating what the business is worth.

You've hit the nail on the head.

IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF
I get it on rent then it's a bargain. If not I'm in serious trouble.

It's a BIG BIG BIG gamble.

I just don't know which way to play it.

Opinion

justintime999 wrote: »

You've hit the nail on the head.

IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF
I get it on rent then it's a bargain. If not I'm in serious trouble.

It's a BIG BIG BIG gamble.

I just don't know which way to play it.

You don't play it. It's not a game. It's real life, it's your future. It's a business, and businesses that work on "ifs and buts" don't seem to last very long, with good reason.

Savvy_Sue

justintime999 wrote: »

You've hit the nail on the head.

IF IF IF IF IF IF IF IF IF IF IF IF IF IF IF
I get it on rent then it's a bargain. If not I'm in serious trouble.

It's a BIG BIG BIG gamble.

I just don't know which way to play it.

I know the line about "you usually regret the things you didn't do more than the things you did do", but if you don't have experience in the letting property field then there's a real danger of you ending up in serious trouble. It's fine to gamble if you can afford to lose. The trouble starts when you can't, but you still do.

lincroft1710

justintime999 wrote: »

I get it on rent then it's a bargain. If not I'm in serious trouble.

If the property was easy to rent out, it probably would have been snapped up by a professional commercial landlord.

colino

Currently, with the exception of a few, and I mean few, hotspots. there is a huge surplus of commercial property begging for tenants. What makes this one special, why hasn't it been hoovered up by the local, "entrepreneurs".
Only way I'd currently add a commercial unit at the moment would be if it had a gold-plated, long-term, nationally advertising, premium priced retailer tenancy in place. Too many hollow shells littering the UK at the moment.