Looking for Single Tenant Investments in Baton Rouge?
Many investors find single tenants investments to be an appealing option. Ideally, with this type of investment, the owner will have little or no responsibility to maintain the property once purchased. This is because in a single tenant deal the tenant is responsible for maintenance, utilities and pretty much any other cost associated with the use of the commercial space. In this situation, the only thing the owner is responsible for is cashing the rent check that appears in their mailbox each month. In the event the tenant isn’t responsible for the costs of managing the facilities, the landlord/investor will include a management fee with the lease, to cover this expense.
What you Should Know About Single Tenant Investments
Know Your Tenants – In general, it is always important to perform a background check ensuring the reliability of tenant applicants. This is definitely true for single tenant investments since your tenant will be responsible for the maintenance and all other costs associated with the property. By performing a background check on tenants an owner can be certain that their asset will properly take care of, saving headaches from any financial issues that would arise otherwise.
Long-Term Income – It’s always rewarding to find a reliable tenant to fill your single tenant vacancy who is punctual submitting rent and takes great care of your facilities. These tenants typically sign leases that are 10 years and longer, so while they may not bring in profit immediately they will over the course of their long-term contract. It should be noted that owners would not typically see a significant boost in income in the first couple months from this type of tenant.
Rate Increases – Since an owner can expect to have this tenant occupy their space for several years, they should plan for rate increases in the lease contract. Make it clear that the tenant is not locked into a specific rate because it will need to be adjusted based on the market.
Find A Single Tenant Investment Broker in Baton Rouge
The SVN | Graham, Langlois and Legendre team has worked on both sides of a single tenant deal, with investors as well as actual tenants. Our Advisors pride themselves in being versed on availabilities in the Baton Rouge market and the specific needs of both investors and tenants. If you are looking for a single tenant investment opportunity, or a space to lease, give one of our Advisors a call. They are here to help!