Buying or leasing a commercial property in Singapore means that you need to have a packed understanding of its potential risks. As an intelligent renter, you must be able to come up with diverse solutions even before any setback arise. The last thing you want to occur is getting trapped in a well-furnished flat for a year, and then finally realizing that leasing a commercial space near a business district is a far better option. To avoid such difficulties, here are some of the probable risks a business meets when buying a commercial property:
Zoning or allowable use
Finding the finest commercial property in Singapore is useless if its estate type is not well suited to the kind of business you are arranging to have. Make the right choice by guaranteeing that the place is equivalent to the use allowable under the local government zoning rules. As a property tenant or owner, your accountability includes ensuring that the properties you are using keep on with planning laws. Non-cooperation means that your business cannot be conducted legally within the property.
Picking a wrong location
When taking a location, remember that today’s most suggested neighborhood for business owners might not be as operational tomorrow. With the fast paced trend in Singapore, it is hard to predict what will work best for your commercial needs in the future. That’s why you must do a lot of research and planning before you choose to seal a deal. Some even consider leasing since it is a more realistic way to solve this setback. With rental, you can easily decide to stay or move to a new location once the contract finishes.
Weak cash flow
What if the unit has to undertake expensive repairs or your production is not doing so well due to renter concerns? Such complications can affect your cash flow. Avoid these possibilities by making sure you are taking a well-maintained commercial property. Moreover, you must supervise every level of operation by doing consistent on-site visits. Doing so will help you discern about problems within the profitable unit before it’s too late to do anything to remedy them.
Wear and tear
Sometimes upgrade or even renovations are just done to mask the wear and tear of a commercial unit. So be sure you examine your company’s new office or you might end up using your business funds to repairs or maintenance. Take some time to visit the commercial property just to see how former renters or owner used the property and the facilities. You might even desire to check if there are responsibility concerns or environmental troubles like lead paint or asbestos.
Problems with early access period
Your regular rent clock starts the moment move into your commercial unit. Regardless of whether you are already using the unit or you are just setting up equipment. Avoid wasting time or money for rental costs even before your business starts operating by asking the landlord or your owner to give you early access. Ask for at least one week before your lease clock starts ticking. Having a week to set up allows you to ensure that you will have anything you need to resume to regular work routine.
In case of need to hire more staff than expected, make sure that the commercial unit has enough space for expansion. Check if the lessor allows changes in the interiors or exteriors of the unit.
For more details about leasing commercial units in Singapore, contact one of SOL’s reliable staff. They will be more than willing to help you with your rental concerns.