Business for renting premises. Commercial real estate as a business: what you need to know. The commercial real estate rental market is divided into premises for different purposes

Leasing a commercial property is not difficult, and most importantly, profitable. With the right approach and knowledge of the main stages of the process, concluding a deal will not be difficult.

The most important thing is to decide on the price, find a client and correctly draw up the contract.

Let's consider all stages of the transaction.

Determination of cost

When conducting a transaction independently, determining the cost of rent is often not objective.

Every owner wants to get the greatest benefit.

But too much high price may scare away potential tenants, and too low may raise doubts. Typically, owners turn to specialists - a realtor or appraiser - for an assessment of the value.

How to rent out non-residential premises yourself? You can do it without the help of professionals. To determine the price yourself, you need to study similar offers from competitors. This will make it possible to understand general situation On the market commercial real estate and correctly evaluate your premises.

IMPORTANT: The tenant rents a commercial property for the purpose of generating income, so when assessing the cost, it is important to take into account the approximate possible profit that he can receive.

The price is influenced by factors such as:

After taking these points into account and monitoring competitors’ offers, you can objectively evaluate your property.

Search for a client

Leasing commercial real estate from the owner involves searching for potential tenants.

Before doing this, you need to create Commercial offer or announcement.

It must indicate in detail all the characteristics of the property: area, floor, location, infrastructure, technical condition and equipment. It is better to focus attention in the ad on the advantages.

At the same time, it is important to indicate the shortcomings of the room, so that when viewing you do not put yourself in an awkward position and do not frighten off the client.

Let's take a closer look at ways to find potential tenants.

Search by friends. The easiest way to find a person interested in your proposal is to ask friends and relatives. Often, property owners move in business circles, which means this simplifies the task of quickly renting out their property.
Placing an ad on specialized Internet resources, for example, Avito. The advantage of this method is that your proposal will be seen by hundreds, or even thousands, of interested parties. To find a tenant as soon as possible, you will need to write a good, detailed advertisement, describing all the pros and cons of the premises.
The advertisement must be accompanied by several photographs.
This will make it easier for a potential client to decide whether it is worth considering or not.
Sending an offer by email. Bars, restaurants, shops, salons and other organizations and establishments are often looking for premises to move or open another location. You can find out the email addresses of business owners who may be interested on the official websites of their companies.

Presentation and signing of the document

Proper presentation of your property is the key to quickly concluding a deal.

When showing the premises, try to tell more information about it, focusing on the advantages and possible profit that the object will bring to the client.

Concluding an agreement is the last, but most important and responsible step in the transaction. A correctly drawn up and executed document will protect the owner from an unscrupulous tenant. What should be included in it:

personal information of the tenant and owner;
address, area and technical specifications;
registration data;
deadline;
the amount of payment and the procedure for its transfer;

IMPORTANT: By law, the owner does not have the right to increase the fee more than once a year. Therefore, the contract must indicate maximum size possible increase rent and the period in which the tenant will be notified about this.

It is important in the document to describe in detail the rights and obligations of the parties and indicate the nature of liability for violations of each clause. It would be useful to supplement the agreement with an inventory of the property available on the premises. After termination of the contract, the owner will be able to receive monetary compensation, if the furniture or equipment was damaged by the tenant.

The fastest ways to rent out non-residential premises

How to quickly rent out commercial real estate?

For those who do not want to spend personal time searching for clients, negotiations and showings, it is better to contact a realtor.

He will evaluate the property, set the correct market value, take attractive photographs, draw up a competent ad and will present your property himself.

However, even working with agents has its own nuances. As a rule, realtors work for a commission from the amount of the rental or sale of real estate.

The fee, in the form of a percentage, is usually taken from the applicants, not the owners.

However, not every applicant will be ready to cooperate with an agent who will have to pay money.

Therefore, if the owner urgently needs to find a tenant, he can pay the commission himself. This is often practiced if the owner has many properties or wants to rent out luxury real estate.

The money paid to the agent will go not only into his pocket, but also into necessary expenses– photo, video presentation, advertising, etc.

Another quick way rent out a non-residential building or office - reduce the cost. At the same time, it is not necessary to rent it out for next to nothing; it is enough to reduce the payment by 10%. Then your offer will be competitive.

Rental periods

The validity period of a lease agreement for non-residential premises is an important point. It comes in three types.

According to the Civil Code of the Russian Federation, Article 610, paragraph 2., if the contract does not specify a period, then it is considered concluded for an indefinite period. In this case, each party has the right to terminate it at any time, giving three months’ notice of its decision.

A short-term contract is concluded for a period of no more than a year. How to renew a lease agreement for non-residential premises? The extension occurs automatically for an indefinite period if both parties are satisfied with everything.

In this case, a re-conclusion of the agreement is not required. In some cases, the owner may insist on a new document to change the terms or payment. This is only possible with the consent of the tenant.

A long-term agreement is subject to registration with the Federal Reserve System. The extension of such a lease agreement for non-residential premises occurs in the same way as a short-term one - automatically, with the same conditions, rights and obligations of the parties, or is concluded new document with changed requirements.

Early termination of a tenancy agreement for a certain period is possible both on the part of the owner and on the part of the tenant.

Such issues are resolved in court or by mutual agreement of both persons.

Knowledge important nuances and opportunities for leasing commercial real estate will help you conclude a profitable and safe deal that brings regular passive income.

Today, real estate is considered the most effective and profitable investment vehicle. No wonder. After all, every year the price of real estate increases. This is especially true for apartments and country houses that are located in resort area. Purchasing real estate in order to rent it out in the future or resell it at a better price is considered a fairly profitable business. This is why there is an increase in real estate investment.

For real estate business you can use:

apartments;
Houses;
non-residential premises;
rooms in communal apartments.

The most profitable and effective way is considered to be the business of renting out apartments. This especially applies to apartments and country houses. Of course, if you wish, you can also engage in commercial real estate. But here it is worth considering that there is a limited number of consumers for such a “product”. When organizing such a business, it is worth considering a number of factors, and this concerns not only the presence of a very large start-up capital, but also knowledge of the basic rules for renting out an apartment.

Renting out apartments

The most popular product on the real estate market is apartments. This is especially true for large populated areas. Looking for better life a large number of people from the suburbs are moving to live in the city. As a result, there is a need to find housing. It is this audience that forms the basis of the client base.

Today the apartments can be rented out How on long term, and daily. Each of these options has its own advantages and disadvantages. Therefore, as an entrepreneur, you must carefully consider this information and also follow the procedure for renting out an apartment.

Long-term apartment rental

Most often, entrepreneurs prefer to rent out their property for a long term. The advantage of this option is that you do not need to come to the apartment every day and clean it after each subsequent client, as is done with daily rental of residential real estate. Things are much simpler here. The landlord simply comes once or twice a month to collect rent and check the condition of the apartment.

To rent out an apartment you must:

Post an ad. To place such an advertisement, you can use both printed newspapers and the Internet. Each of these options is highly effective. So it's worth using both of them.
Put the apartment in order. If necessary, repair work and the purchase of furniture can be carried out here. Equipped apartments with good repairs are much more expensive.
Calculate rent. To do this, you need to divide the cost of the apartment by one hundred. It should be taken into account that the cost of an apartment is influenced by its location, square footage, as well as the infrastructure in the area.

The most important thing is to find a tenant and conclude an agreement with him.

Daily apartment rental business

WITH daily rental things are a little different. To organize such a business, you need to put in a lot of effort. Often properties are rented for one or two days. After each client, it will be necessary to carry out high-quality cleaning of the apartment. This will allow you to present your “product” in all its glory.

Often such real estate is used by nonresident people who temporarily stay in one or another locality. And this means that customer base will constantly change. To make it easier to find clients, you can use the services of real estate companies. It is worth considering that such companies charge a small fee for their services.

Renting an apartment from the owner: paperwork

When renting out an apartment, an agreement is concluded between the tenant and the landlord. It specifies all the rights and obligations of the parties. Particular attention is paid here to the rental period and its cost. At the same time, it spells out exactly what is included in the rent. Indeed, in some cases, the rent may also include payment for public utilities. To avoid problems with documents for renting an apartment, many landlords cooperate with real estate agencies. Thus, specialists not only search for clients, but also arrange rent in accordance with the laws of the country.

If a business is created without the participation of real estate companies, then some difficulties will arise. You will have to look for clients and conclude an agreement with them yourself.

Of course, in that case renting out apartments from the owner will allow you to extract maximum profit from real estate.

Taxation and penalties for renting an apartment

Renting out an apartment is considered a profitable business, which means that it should be subject to taxes. The amount of tax depends on the form of business organization:

For individual The tax rate for renting out an apartment is 13% of the profit.
For an individual entrepreneur, income tax from renting out an apartment is 6%. With the second option, it is worth considering that, having the status of an individual entrepreneur, you will have to pay some insurance premiums.

A bakery franchise is a good business idea. Everything about the proposed franchises on.

To circumvent the tax system, many landlords hide their real estate business. According to the law, an entrepreneur may incur not only financial, but also criminal liability for tax evasion. When calculating penalties, the number of unpaid taxes is taken into account. For such an offense, a would-be entrepreneur can receive a maximum fine of up to 500 thousand rubles. In this case, imprisonment for up to 3 years is possible. Therefore, it is better to pay taxes for renting out an apartment than to pay a fine later.

Disadvantages of the apartment business

Almost every business has disadvantages. And apartment rentals are no exception. First of all, it is worth noting that in order to start such a business, you must have either real estate or start-up capital for its acquisition. Of course, you can also use the sublease option. In this case, you will have to put in a lot of effort and time.

Throughout the year, rental prices may fall or rise. If increasing the rent brings more income, then lowering it, on the contrary, reduces it. In any case, such changes can have a negative impact on business development. Speaking about rent, you need to remember that when renting out an apartment It's better to take advance payment, which will reduce the risk of being deceived.

The main risk when renting out an apartment is that tenants may cause damage to your property. This will entail unplanned expenses. Such risks must be taken into account when drawing up a contract.

Renting out houses: options

A good option to make money on the real estate market could be renting out private houses. To do this, it is not necessary to own such real estate, as you can use the sublease option. Of course, when organizing such a business, it is necessary to take into account some features.

How to organize a business on country real estate

In order to organize such a business, you need to have a very large start-up capital. It will mainly be used to purchase country real estate and improve it. Particular attention in this matter should be taken into account when searching for tenants. Country houses are often used for have a nice holiday on the weekend. Of course, renting out houses for a long period of time is not excluded. Short-term rental of a country house can bring a lot of trouble. This is especially true in cases where the tenants are young people who want to spend a “noisy” holiday there.

Without sufficient starting capital, you can use sublease. In this case, you will have to put a lot of effort into finding and persuading the owners of country real estate to sublease their house.

The disadvantage of such a business

The main disadvantage of such a business is the significant investment. If we are talking about renting out a house for a day, then you will have to spend a lot of time and effort on cleaning it. Subletting comes with a lot of responsibility. After all, you will have to bear the responsibility for damage to property. This may result in the termination of the sublease agreement.

Renting out premises

Probably the most profitable type of business in the real estate market is renting out premises. In this case we are talking about the rental of commercial real estate. Renting out office, warehouse and other premises can bring quite a good profit. Of course, to engage in such a business, you must have documents to own this property.

Sublease of premises

Sublease of a part of non-residential premises implies the lease of real estate with its further rental. To do this, you need to find a lessor with whom an agreement will be concluded for long-term rental. The lease agreement must take into account that the premises will be rented out in the future by the existing tenant. In this case, the profit may exceed the costs twice. The main thing is to know how to sublet commercial premises or anyone else.

When organizing a business on a sublease, you need to be sure that the lessor will not terminate the lease agreement before the due date. To do this, you need to discuss all controversial situations in advance. As for determining the rent, it all depends on you. The income from such a business will depend on this. When organizing such a business, it is worth considering that you have a lot of responsibility. It is necessary not only to find a responsible landlord, but also to rent out the premises as profitably as possible.

Premises lease agreement, taxes and fines

Recently, the rental of industrial premises has become popular in great demand. This especially applies to major cities. Based on this, a large number of companies appeared on the market and decided to do business on sublease. When renting premises, a typical agreement is drawn up, which specifies basic information on the transaction being carried out. If we are talking about subletting premises for a store or office, then this feature must be specified in the contract.

As when renting out an apartment, the entrepreneur must pay tax on each transaction carried out. Otherwise, according to the law, financial and criminal liability is provided. Here an entrepreneur can wait:

the maximum fine is 500 thousand rubles.
imprisonment for up to 3 years.

Disadvantages of a rental business

Lease and sublease non-residential premises has some disadvantages and risks. This is especially true for subletting. For a business to generate income, you need to spend a lot of effort and time finding a tenant. In the case of subletting, you will need to find a responsible landlord. The risk of property damage is also important. To avoid unplanned waste, it is necessary to include in the contract a clause on compensation for losses by the tenant in case of damage to property.

Choosing a rental option depending on capital

Organizing a business on rental real estate has its own risks. This is especially true in cases where significant capital investment is required to open it. If you have a small starting capital available, then you should opt for subleasing. In this case, the costs will only relate to concluding a contract and finding clients.

If the starting capital allows, then you can consider the option of purchasing real estate. In this case, you can purchase both a house and one premises.

To do right choice, you need to analyze the market and determine the most in-demand real estate. In the future, the business can be developed in all directions. This means that you can work not only with residential, but also with commercial real estate.

Leasing commercial real estate is one of the most profitable types of business and is almost always in demand. Many small firms and beginning entrepreneurs are looking for office space to house themselves and organize their business. Their desire to buy a roof over their head, and for relatively little money, allows them to receive a constant income from renting out space. In addition to small entrepreneurs, often the premises can easily be rented out for small shops, where former owners of small kiosks and trading places in industrial markets are increasingly forced to leave.

A striking example of the success of the commercial real estate rental business is the numerous office buildings filled to capacity with small firms.

The attractiveness of this direction also lies in the fact that its organization usually requires only initial investments, and all ongoing costs can be passed on to customers. Naturally, to create such a business, you must have a suitable property.

For the reliability of the enterprise, it is advisable to purchase such an object as a property so as not to depend on the whim of its owner.

However, if there is a lack of funds, you can rent a building, subject to the right to sublease its space. Often, for the owners of a building, renting it out entirely is more profitable than painstakingly searching for many small tenants and formalizing relations with them. This is all true, but still, a decrease in the profit share significantly affects the overall profitability of the project, so purchasing a building as a property is always a priority compared to renting, and carries fewer risks for the entrepreneur.

It is absolutely not necessary to choose real estate in the city center, where their cost exceeds all imaginable limits.

It is often much more profitable to buy a building or premises on the outskirts of the city or somewhere in residential area, which will require a significantly lower level of investment.

The only important condition when selecting real estate is the availability of public transport stops nearby.

A good option for purchasing such an object are old abandoned buildings of bankrupt industrial enterprises, offices shopping centers. The worse technical condition the building is located, the cheaper it can be purchased, which is what many entrepreneurs who make money by renting out commercial real estate take advantage of. On the other hand, if there are sufficient funds, sometimes it is easier to erect a new building, planning in advance its space for renting out.

When renovating an old premises or equipping a new one, it is necessary to take into account the specifics of renting out commercial real estate.

Since the premises of the office building will be rented to different tenants, it is necessary to provide for separate communications and the possibility of disconnecting any room from heating and electricity in order to avoid unnecessary costs for empty space. In addition, it is advisable to design in advance common areas, toilets, eating areas, and locations of shared office equipment. This will create comfortable working conditions for small businesses and increase the attractiveness of real estate. As a rule, tenants do not have any special requirements for the finishing of premises, so repairs and finishing can be done using cheap building materials. This reduces the amount of investment required.

Particular attention must be paid to connecting modern communications, especially high-speed Internet, as well as organizing wi-fi.

Moreover, among the tenants it is beneficial to have an accounting firm, as well as a company offering office services: photocopying, printing texts, and so on. This makes it possible to provide tenants with the necessary office services and fully fill all the premises for rent. To attract clients, you can also use common areas, the lobby of an office building, allowing tenants’ advertising products to be placed in them, installing special advertising structures for this purpose.

An excellent addition, from the point of view of technical equipment, is also the connection of mini-PBX and the provision of urban telephone numbers, which will help secure permanent tenants in the designated areas.

When organizing a business for leasing office real estate, it is necessary to pay special attention to the legally correct execution of contracts and the possibility of recovering damages from unscrupulous tenants. The efficiency of leasing office real estate is confirmed by experts who estimate the growth of rental rates by approximately 10% per year. Experience shows that it is possible to recoup investments in the creation of an office real estate center in 2-3 years.

Naturally, for the proper organization of a business, it is necessary, which can be ordered on our website.

It would seem a simple process of finding premises for commercial rent and the contracting process. But, unlike rental housing, this area of services is subject to different laws and regulations. To resolve this issue, some businessmen hire a person who searches for suitable real estate.

This is done for many reasons, since the important parameters in the choice are: city district, presence of competitors, floor, type of premises, availability of communications, area and other important parameters. But to conclude a lease agreement for commercial real estate, discuss the terms of the lease and sign the agreement document itself, it is better to hire a lawyer.

The legislative framework

The entire rental process is regulated by the Civil Code Russian Federation, or rather Article 34 “Rent”. According to the law, all conditions that arise during the rental process are written down in the rental document - an agreement that is concluded between the client (tenant) and the landlord.

The most basic responsibilities of the landlord are considered to be maintaining the leased premises in good order, independently carrying out major repairs, in accordance with the Civil Code of the Russian Federation, Article 616. The same article also outlines the responsibilities of the tenant - carrying out cosmetic repairs, maintaining cleanliness and order in the premises, paying all current expenses.

The landlord can lease commercial real estate under other conditions, but then they must be specified in the lease agreement. For example, the landlord may shift its responsibilities for major repairs to the tenant or vice versa.

It is best to involve a lawyer in this process who will understand all the provided real estate papers and help conclude an agreement on mutually beneficial terms. Hiring a qualified lawyer can help identify unauthorized violations that could be included in the businessman's expenses in the future.

Non-legalized redevelopment may become such an unnecessary expense item. A more serious case would be renting a commercial complex with plots of land and several premises. Here it is important to check the presence of all necessary papers for all objects and the absence of additional rent for part of the premises or the presence of deposits.

It may take too much time to put documents in order, register and sort out relationships with other tenants, and the best option may be to choose another premises.

Property search

One of the most difficult tasks is to find a suitable property, preferably without intermediaries.

The first thing citizens do is turn to print media, which are full of advertisements for renting non-residential premises. Typically, 90% of them are agencies, and only 10% are property owners. For greater convenience for businessmen, such advertisements have begun to be placed on Internet resources, in particular on Avito, commercial real estate rentals are provided with a photo and address of the premises.

Such resources are convenient because using filters you can immediately discard all options that do not fit the search criteria. For example, select all offers for renting office space in a certain city or area, and the system will automatically return all suitable offers, which will significantly speed up the search process.

The commercial real estate rental market is divided into premises for different purposes:

Office.
Trading.
Warehouse.
Production.

Therefore, before you start your search, decide what type of real estate you need to choose, in what area of the city, what area, number of floors and other important parameters. Having defined the entire set of conditions, it will be easier for the searcher to formulate his request.

If the search process is not included in the plans, you can entrust this matter to an intermediary. Typically, the services of such companies are paid at a rate of full or half the cost of the monthly rent. But it is advisable to initially sign an agreement with them and determine payment for services only after selecting the premises, so that they are also interested in the timing and quality of their work.

The process of concluding a contract

This is an important process that is best done with a lawyer. Before signing the documents, you must carefully read and discuss all the terms of the lease. Check the owner's documents: a document on the right to dispose of real estate, a floor plan and the statutory documents of the legal entity that owns the property. After checking the documents, discuss all possible rental conditions:

Communal payments.
Telephones and Internet access.
Cost of monthly rent.
Rental periods.
Force majeure circumstances.
Minor repair work.
Major renovation.
Conditions for termination of the contract.

Discuss who will be assigned a specific obligation and the time frame within which it must be completed. All conditions must be recorded in the lease agreement for commercial real estate.

Signing the contract

It is best to draw up an agreement and discuss the terms personally with the owner of the property when renting without intermediaries. In this case, pressing issues are resolved more easily and quickly, and there is the possibility of concessions on the part of the lessor.

When drawing up the text of the contract, a mandatory clause must indicate the full physical address of the property, details and details of the owner. If possible, you should request a floor plan and attach it to the document, especially if redevelopment has been carried out.

The document must be signed in several versions by both parties. Only a document of a certain sample will be able to confirm the terms of the lease and the process of renting the premises.

The duration of the lease may be specified, but if it is not specified, the agreement is considered to be concluded for an indefinite period of time. Don't forget to indicate the exact amount of the rent. Without the specified cost of renting commercial real estate, the transaction is considered not concluded. To take into account currency changes, it is necessary to indicate a possible percentage increase in the rental price, but not more than once a year.

Object transfer process

One more important document After the lease agreement, there will be an act of transfer of real estate by the lessor to the lessee. The day of signing such an act is considered the beginning of the lease. The act must be signed only after a thorough inspection of the building or premises. If a malfunction is noticed during inspection, it should be recorded in the report. By doing this, you can protect yourself from unnecessary expenses that will then fall on the tenant.

In addition, such an analysis of the premises before renting commercial real estate will make it possible to demand that the landlord eliminate the noticed defects free of charge, or reduce the rental cost by a certain amount. If the condition of the property seen does not satisfy the client in any way, he can quite rightly demand termination of the contract.

Remember that upon expiration of the contract, the lessor will take over the property according to the deed that was concluded on the day the premises were accepted for rent. And if there are no faults recorded there, then the landlord can legally demand that they be corrected at the expense of the tenant. Conversely, if during the rental period positive changes were made in the conditions of the premises, the tenant has the right to demand reimbursement of expenses incurred. Therefore, carefully record all the terms of the lease in the contract.

Renting commercial real estate (warehouses, office buildings, mini-workshops, etc.) is often a success among novice entrepreneurs. And this is correct - you should not invest money in buying an office if you are not sure that the business will work out; it is better to buy it later. Those who have already reached certain heights and simply want to expand their own boundaries also prefer to rent the necessary premises first.

5 mistakes that prevent you from achieving success when leasing commercial real estate
Who is the client?
Strategy for investing in mini-offices
For what duration - month, day, hour?
Coworking center in Moscow City, which brings in from 100,000 rubles per month
How to make an office from an apartment?
There will be no additional investments!
I don’t have real estate and I can’t!
Bidding and bankruptcy auctions - the harsh truth of buying real estate for 1% of the cost

Thus, renting is beneficial for both those who rent commercial real estate and those who rent it out - passive income has never bothered anyone. But landlords cannot always find a client for the premises or could receive income several times more than for this moment. This happens because they do not know the nuances that are involved in leasing commercial real estate, and they are the ones who make income grow by leaps and bounds.

5 mistakes that prevent you from achieving success when leasing commercial real estate

Who is the client?

This is the first and main mistake - they are looking for clients in the wrong places, because they have no idea who they are - a future tenant? It’s easy to “calculate” - what you can count on will be indicated by the condition of commercial real estate for rent, its location and equipment.

Strategy for investing in mini-offices

Vladislav Elizarenko is engaged in real estate management, both residential and commercial. He is always looking for new ways to increase income for his clients, as well as share his work with our readers :)

For what duration - month, day, hour?

Of course, signing an agreement for a year or more is reliable, so you can be sure that the premises will generate income all this time. But, renting commercial real estate for a day or hourly sharply increases its amount and reduces the depreciation percentage of the premises - investments in commercial real estate always pay off. Therefore, recently this type of lease has been closely related to sublease (this intention must be notified in a separate clause in the contract).

A company or individual rents a fairly large room and turns it into, for example, a coworking center - a real lifesaver for those who do not have their own office and are forced to meet with clients in a cafe or on the street. But this matter has its own nuances, which you can learn about from experienced investors, for example, case of Roman Kotov talks about this type of business in an accessible and intelligible way.

Coworking center in Moscow City, which brings in from 100,000 rubles per month

For investors of the Investment Territory project, Roman Kotov conducted a master class, during which he revealed the key features and business models of investing using this technology. You can download it here

How to make an office from an apartment?

If you have your own apartment, empty and unnecessary, and, moreover, located on the ground floor, you should not limit yourself to renting it out for living. Firstly, the income from this type of rental is much less than what renting commercial real estate can bring. Secondly, residential premises deteriorate much faster than an office or even a warehouse. The lease agreement for commercial premises is usually much stricter and always contains a clause on penalties or fines if the property is damaged.

The correct solution would be:

Transfer an apartment from residential to non-residential
Make appropriate repairs
Rent it out for mini-offices, a store, and so on. You should not choose as clients those who want to rent premises for a bar, cafe or other entertainment establishment - they work late and may have problems with neighbors

There will be no additional investments!

And in vain, because renting out real estate without renovation will not bring much income. There is no need to build “royal chambers”; you can get by with ordinary cosmetic repairs or economical investor renovations. The decoration of the rooms will be done with high quality and with subtle taste, but this will automatically increase the rating in the eyes of potential clients. It is better to make the renovation “neutral” - so that the interior suits both a store, a mini-warehouse, and an office building.

It is definitely worth finding financial resources for insurance. Nobody knows what will happen after a while - life is unpredictable. It could be anything:

Fire
Flood
The machinations of competitors
A negligent driver who crashed into a wall and broke it

But, if any force majeure is covered by insurance coverage, the damage will be at least partially compensated. Moreover, even tenants can be forced to pay for insurance if this clause is included in the contract.

I don’t have real estate and I can’t!

What's stopping you from making it happen? Learn to buy commercial real estate at a ridiculous price on bankruptcy auctions You can do it with those who have been doing this successfully for a long time - you won’t need large investments in order to start earning decent amounts of money.

Bidding and bankruptcy auctions - the harsh truth of buying real estate for 1% of the cost

Andrey Merkulov co-founder of the Territory of Investment project. In this video, he breaks down bankruptcy auctions. Read more in the article on this topic.

And those who do not dare to start this profitable and fairly easy business are only hindered by their own fears.

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