Guide to rent out commercial real estate in Denmark
When you as a property company, private landlord or company have to rent out your vacant commercial premises or vacant commercial leases in Denmark, it is important that you do it structured and take a number of factors into account. In this way, you avoid being in a situation where you cannot get your premises for rent, or where you do not get the rent you expected. You can use this guide for renting an office, clinic rental, showroom rental, rental of shop, rental of restaurant, rental of shared office, rental of commercial premises, rental of commercial premises and warehouse rental.
We have developed this guide for how you can complete the letting of business premises as quickly and as best as possible.
1. You must react quickly when you receive a termination of your business premises
When your existing tenant terminates their lease, you as a landlord usually have a minimum of 3 months to find a new tenant. However, this can vary from place to place, which is why it is important that you check your lease so that you are sure how long you have before you no longer receive rent.
When you receive a notice of termination, you must therefore react quickly by putting your business lease up for rent again. Renting premises does not necessarily go quickly. This does not mean that you should rent out your premises to the first possible tenant, but that you should familiarize yourself with the market so that you know what type of tenant to look for and what price you can expect to get for your premises.
Many commercial landlords wait far too long to start the letting process. It ends up costing the landlords a lot of money, because you end up with empty premises for which you don't get the monthly rent.
2. Make a review of your business premises for rent
It is important that you start by familiarizing yourself with the type of business premises you have. What is the size of the premises and how many commercial premises are there?
It is also important that you consider which services and facilities you can offer. Are there meeting facilities, meeting rooms, canteen, parking or anything else that might be of interest to the tenants? If you can offer something that companies cannot find elsewhere, that is an advantage.
It is also important that you go through the tenancy and make sure that it looks nice and inviting. Remember that the tenants will enjoy renting a business lease that is well maintained and inviting.
Once you have the above under control, you can start thinking about how you want to price your business premises. Here it is important that you take into account a number of factors such as size, location, services and facilities. You must also be aware of what is standard in the market so that you do not price yourself out of the market. At Lokaleportalen.dk you can always see what similar business premises cost.
3. Create a profile of your future tenant
Once you have analyzed your lease and its benefits, you can start thinking about what type of companies will benefit from renting your business premises. Which industries best suit your location? What sizes of businesses will benefit from your facilities? And which services will they appreciate?
As a landlord, you earn your money through long-term rentals. It is very expensive to have tenants for a shorter period of time. The better you are at creating a profile of your ideal tenant, the greater the chance that you will find the right tenant who will stay for many years.
The prerequisite for making a lot of money as a landlord is that you have a tenant for many years. This means that you both have to find the right tenants (who suit the premises well), but also have to find a successful company as a tenant, which will hopefully be able to pay rent for many years.
4. Describe your commercial lease in a sales pitch
Now you are ready to create a sales pitch. The purpose of the sales presentation is to create an overview of the tenancy in relation to which tenants you wish to bring into the tenancy.
The sales list must, among other things, contain data on area, location, type, price, annual costs, other conditions.
The sales listing must also contain a full description of the tenancy and photos.
5. Find out if you want to use a commercial broker
Most real estate companies and private landlords themselves are responsible for the letting of their commercial leases, as it is very easy. But it is possible to use a real estate agent who specializes in renting out commercial premises.
The commercial broker can help you with
-They make a sales pitch and assessment
-They find potential tenants
-They draw up a rental agreement
-They are responsible for all contact with the tenant and for advice on the optimal tenant
-They ensure that the lease is let out
It can be an advantage to use a commercial broker as they may have a larger network and thus be able to find more potential tenants. They are also responsible for all contact with the tenants and ensure that the tenancy is let out. A commercial broker typically charges a fee of 10-15% of the first year's rent.
Many bad experiences with commercial brokers
Many property companies and private landlords have bad experiences with brokers. They experience that the commercial broker does not work very hard with the letting of the lease after the commercial broker has first received the commercial lease in commission. If you choose a commercial broker, you must pay close attention to how and how much the commercial broker works with the letting of the commercial lease.
Another reason why many property companies and private landlords have bad experiences with commercial brokers is that there are many unscrupulous commercial brokers on the market. The rogue business brokers charge marketing fees for their services, but do not deliver the expected service. The rogue business brokers often give real estate companies and private landlords false hopes of quick letting in order to get the contract for letting properties, commercial properties, retail properties and investment properties.
Do not give the commercial broker the lease on sole commission
If you choose to work with a commercial broker. is it important that you do not give the business premises to the commercial broker on sole commission. If the commercial broker does not have the lease in sole commission, the commercial broker only earns money if the commercial broker rents out the lease. In this way, you can work on renting out the tenancy yourself at the same time as the commercial broker - and do not pay money to the commercial broker if you find a tenant yourself
If you do not give the business broker the case on a sole commission basis, you can also let several different business brokers work with the letting of the lease. That way, you can be sure that more people see your rental property and thus increase the chances of finding a tenant.
Do not pay marketing fees to the business broker
Many business brokers charge a larger marketing fee as part of their agreement. If a broker who wants to be your adviser wants to charge a marketing fee, it is a bad sign that he does not have access to relevant tenants for your tenancy. You should therefore never pay a marketing contribution to a business broker.
6. Market your commercial lease
Now you are ready to start marketing your premises. Here is the obvious process
Advertise your premises on Lokaleportalen.dk
It is very important that you create a good advertisement that describes your premises and your contact information clearly and clearly. Remember to take some good pictures of your premises so that the tenants can see what they are renting.
You post your ad directly here on Lokaleportalen.dk, which is Denmark's largest portal and search engine for vacant business premises. Lokaleportalen.dk is used by almost all companies that are looking for new premises. By advertising your premises on Lokaleportalen.dk, in other words, you expose the business premises to a large part of the companies looking for premises at a given time.
Virksomhedslokaler.dk is another portal for business premises which is focused on smaller commercial leases. If you want to rent out small business premises, click on these links:
lease of office, < a href="https://www.virksomhedslokaler.dk/udlejning/klinik">clinic rental, showroom rental , rental of shop, rental of restaurant, rental of shared office, rental of business premises, rental of business premises and warehouse rental.
Make direct contact with the companies looking for business premises
You can also make direct contact with the companies looking for new business premises. Many of these companies describe their wishes on Lokaleportalen.dk. You can search directly in the directory for tenants and make direct contact with the companies looking for premises that resemble your business premises and invite them to a showing.
Use your network to find a tenant
Many companies find their new premises through networks and personal contacts. So if you know someone who is looking for new premises, reach out to them and tell them about your business premises. Maybe you can come to an agreement.
Use social media
Social media is an obvious opportunity to reach many potential tenants at once. Make an ad on Facebook or other social media so that more people can see your premises.
7. Showcase the business premises
Now it is starting to flow in with interested tenants. When viewing the business premises, make sure you have a mental list of questions so you can determine if they are the right match for your premises. Remember to give the tenants time to look around and ask questions. Remember also to be open in relation to price negotiations and in relation to the wishes of the potential tenants.
8. Check out the tenant
Once you have found a tenant that you think you want to rent out your commercial property to, it is very important that you check the tenant out. The most important thing is that you investigate the tenant's financial situation. You can easily pull the tenant's accounts via public databases. It is also important that you use your gut feeling. It can be very expensive to rent premises to the wrong tenant.
9. Sign the lease
Once you have vetted the tenant and are sure that everything is in order, it is time to sign the lease. Remember to have the lease checked by a lawyer so you are sure it is in order. The lease must, among other things, contain information about the rent, deposit, binding period, areas of use, expected costs, maintenance and subletting.
10. Keep an eye on your commercial lease
Even if you have signed a lease with a tenant, this does not mean that you no longer have to keep an eye on your business premises. You still have to keep an eye on how it is maintained, whether there is any damage and whether the tenant treats your property properly and fairly.