It’s a fact that renting property in Malta isn’t something that should be done haphazardly. For this reason, our knowledgeable team at Vassallo Group, have decided to come up with 7 useful tips to keep in mind when venturing out into the world of property management.
1. Is the rent appropriate?
As obvious as it may seem, the price of a commercial letting must reflect the size of the premises, its location as well as the facilities offered; does it include common areas such as hallways? What facilities does the property include? Are there enough restrooms? Having a checklist of any facilities or criteria you may have may come in handy.
The quote for a commercial lease is generally dependent on its square footage. Anyone searching a commercial property for rent should take into account the area required for equipment, furniture and staff.
3. Who is responsible for what?
Murphy’s law states ‘Anything that can go wrong, will go wrong’. As morbid and pessimistic as that may sound, being prepared for the worst is the key to avoiding hassle in the future. It is therefore essential to be clear on who is responsible for what, should something happen. This would include discussing maintenance of the premises and repairing of equipment. Think of it as a pre-nuptial agreement, minus the romance.
4. Time frame
Naturally, most landlords prefer long-term rent, however, have a clear time frame in mind. For new business owners, it might make more sense to ask for a short-term lease with an option to review, in order to be covered should the business not take off as quickly as planned.
5. Can you make changes to the property?
Depending on the type of business you have, you may need to modify the area’s structure by building – for instance – partitions to section off a large room. Thus, any lease should address whether the changes needed can be made and who is responsible for returning it back to its original condition once the contract is up.
6. Your neighbours
Nearby tenants can have a significant impact on your business, both positively and negatively. Businesses close by can bring in foot traffic which your business might depend on to sustain itself. Similarly, your landlord may rent a nearby space to a competitor of yours, in which case you might consider asking for an exclusive use clause.
7. Early Termination Options
Should you, for whatever reason, need to terminate your contract ahead of time, request that provisions are included to allow you to do so as hassle-free as possible. One such option would include being given the right to sublet your space.
Renting a commercial property is therefore not that different from a pre-nuptial agreement. It is all about finding the right match for both parties while also predicting what could go wrong and knowing what will be done if does.
If you need help with commercial letting or advice regarding commercial long term letting in Malta, click here for more information.