Guide: Renting out commercial real estate in Sweden
Do you have commercial properties in Sweden that you wish to rent out? Then this guide is for you.
When you, as a property company, private landlord or company, rent out your vacant commercial real estate in Sweden, it is important that you do it in a structured way and take a number of factors into account. In this way, you avoid ending up in a situation where you do not receive the rent you expected. We have developed this guide to how you can quickly and efficiently carry out the leasing of your premises in Sweden, including renting out office premises in Sweden , renting out warehouse premises in Sweden, renting out clinic premises in Sweden , renting out retail premises in Sweden, renting out industrial real estate in Sweden, renting out restaurant space in Sweden and renting out showrooms in Sweden.
1. You must react quickly when you receive a termination of your commercial rental
When your existing tenant terminates their lease, you as the landlord usually have at least 3 months to find a new tenant and agreement. However, this can vary, so it is important that you check your lease so that you are sure how long you have before the rental income is lost.
When you receive a notice of termination, you must therefore react quickly by starting a rental process. Renting out premises is not necessarily quick. However, 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 get empty premises, for which you then don't get the monthly rent.
2. Make a review of your commercial real estate to be rented out
It is important that you start by familiarizing yourself with the type of premises you have. How big are the premises and how many rooms are there?
It is also important that you think about what services and facilities you can offer. Are there meeting rooms, meeting rooms, dining room, parking or other things that might be of interest to the tenants? If you can offer something that companies can't find anywhere else, that's an advantage.
It is also important that you go through your premises and make sure they look nice and inviting. Remember that tenants will enjoy renting a space that is well maintained and inviting.
When you have the above in mind, you can start thinking about how you want to price your premises. Here it is important that you take into account a number of factors such as size, location, services and facilities. You also need to be aware of what is standard in the market so you don't price yourself too much above or below the market. At Verksamhetslokaler.se you can always see what similar premises cost.
3. Make a profile of your future commercial tenant
Once you have analyzed your premises and its advantages, you can start thinking about what type of business will benefit from renting your premises. Which industries suit your location best? What business sizes will benefit from your facilities? And what services will they appreciate?
As a landlord, you earn your money through long-term rentals. It is very expensive to have tenants for a short period of time. The better you are at creating a profile for your ideal tenant, the better chance you have of finding the right tenant who will stay for many years.
The prerequisite for making a lot of money as a landlord is to have a tenant for many years. This means that you both have to find the right tenants (who suit the premises well), but also that you have to find a successful company as a tenant, which hopefully will be able to pay rent for many years.
4. Describe your premises in a prospectus
Now you are ready to make a prospectus. The purpose of the prospectus is to create an overview of the premises in relation to which tenants you wish to bring into the tenancy.
The prospectus must, among other things, contain information about area, location, type, price, annual costs, other conditions.
The prospectus must also contain a full description of the lease agreement and pictures.
5. Think about whether you want to use a commercial broker
Most real estate companies and private landlords are responsible for the rental of their premises themselves because it is relatively simple. But it is possible to hire a business broker who specializes in renting out premises.
A commercial broker can help you with:
- They make a sales pitch and assessment
- They find potential tenants
- They make a lease
- They are responsible for all contact with the tenant and for advice on the optimal tenant
- They ensure that the premises are rented out
It can be an advantage to hire a commercial broker as they can 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 premises are rented out. A commercial broker usually charges a fee of 10-15% of the first year's rent or a fixed amount to broker the property.
6. Market your commercial premises
Now you are ready to start marketing your commercial rental. Here is an advantageous approach to the process:
Advertise your premises on Verksamhetslokaler.se
It is very important that you create a good advertisement that describes your premises and your contact details clearly and clearly. Remember to take some good pictures of the premises so that the tenants can see what they are renting.
You can post your ad for commercial real estate in Sweden directly here on Verksamhetslokaler.se, which is one of Sweden's largest portals and search engines for vacant premises. Verksamhetslokaler.se is used by many companies looking for new premises. By advertising your premises on Verksamhetslokaler.se, in other words, you expose the premises to a large part of the companies that are looking for premises at a given time.
Make direct contact with the companies looking for premises in Sweden
You can also make direct contact with the companies looking for new premises. Many of these companies describe their wishes on Verksamhetslokaler.se. You can search directly in the database of commercial tenants and make direct contact with the companies that are looking for premises similar to your premises and invite them to a viewing.
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, get in touch with them and tell them about your premises. You might be able to make a deal.
Use social media
Social media is an obvious opportunity to reach many potential tenants at the same time. Make an ad on Facebook or other social media so that more people can see your premises.
7. Show the business premises
Now it is starting to flow in with interested tenants. When pitching the venues, make sure you have a mental list of questions so you can determine if they are the right match for your venue. Remember to give tenants time to look around and ask questions. Also remember to be open in relation to price negotiations and in relation to the wishes of the potential tenants.
8. Check out the tenant
When you have found a tenant that you think you want to rent your premises to, it is important that you check the tenant. The most important thing is that you investigate the tenant's financial situation. You can easily check the tenant's finances 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 commercial rental agreement
Once you've screened the tenant and are sure everything is in order, it's time to sign the lease. Remember to have the rental contract checked by a lawyer so that you are sure that it is in order. The rental agreement must contain information about rent, deposit, commitment period, areas of use, expected costs, maintenance and subletting.
10. Keep an eye on your premises
Even if you have signed a lease with a tenant, this does not mean that you no longer need to keep an eye on your premises. You still need to keep an eye on how it is being looked after, if there is any damage and if the tenant is treating your property properly and fairly.