Purchasing or leasing a commercial property in Singapore is equivalent to the need of having a full understanding of its potential risks. As an intelligent renter, you must be able to have diverse solutions even before having any setback. The last thing you want to ensue is getting trapped in a well-furnished commercial property for a year, and then finally realizing that rental of a commercial space near a business district is a much better option. To avoid such struggles, here are some of the probable risks that happens in business when buying a commercial property:
Picking a wrong place
When taking a location, reminisce that today’s most advised neighborhood for business owners might not be as equipped tomorrow. With the fast paced trend in Singapore, it is hard to calculate what will work best for your commercial needs in the upcoming years. That’s why you must do a lot of examination and planning before choosing to seal a deal. Some people even consider leasing since it is a far more realistic way to solve this setback. With renting, you can easily decide to stay or transfer to a new location once the agreement 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. Moreover, you must manage every level of operation by doing constant on-site visits. Doing so will help you distinguish about problems within the profitable unit before it’s too late to do anything to solve them. Avoid these possibilities by making sure you are renting a well-maintained 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 assembling to have. Make the correct choice by guaranteeing that the place is equivalent to the use allowable under the local administration zoning rules. As a unit tenant or owner, your accountability includes ensuring that the properties you are using keep on with planning laws. Non-cooperation is equivalent to the fact that your business cannot be done legally within the property.
Wear as well as 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.