How to find a tenant for commercial property

Short answer

Get the space ready, set the rent from real comparisons, list it where business tenants look, check each tenant before you commit, and put the terms in a written lease. A broker can do the showing and the screening for you.

Steps to find a tenant

Get the space ready. Clean, repaired, with the documents at hand: ownership papers, approvals, property tax receipts.
Decide the rent and the terms you want. Rent, security deposit, lock-in, rent increase and who pays maintenance.
List it properly. Good photos, the size, the floor, parking and the exact area. List it on property sites, put up a board and tell brokers who work the area.
Screen the enquiries. Ask what the business does, how many people will use the space and when they want to move in.
Check the tenant. Identity, business registration, references and, where it fits, past rent payments.
Sign a written lease. Do not hand over the keys before the agreement is signed and the deposit is received.

Set the rent from real comparisons

Look at what similar spaces in the same building or on the same road are asking, and at how long they have been listed. A rent that is too high leaves the space empty, and each empty month costs more than a small cut in rent. Ask a broker who works the area what is closing, and not only what is listed.

What to check about a tenant

What the business does and whether it fits the space and the building rules
How long it has been running
References from a previous landlord
Identity and business registration papers
Whether they can pay the deposit and the rent

What goes into the lease

Lease term and lock-in period
Rent and the yearly increase
Security deposit and when it is returned
Notice period for either side
Who pays property tax, maintenance and repairs
What the tenant may change in the space

A lease longer than 11 months generally has to be registered and carries stamp duty. Confirm the current rules with your lawyer. If you plan to sell later, a tenant on a clear lease also makes the property easier to sell, as explained in what pre-leased property means.

When to use a broker

A broker helps when you have no time to show the space, when the area is new to you, or when you want a business tenant rather than an enquiry from anyone. Choose with the checks in how to choose a property broker. If you own a commercial space in Ahmedabad, see commercial property leasing or send us the details below.

This page is general information. It is not legal, tax or investment advice. Check the documents of any property with your own lawyer and chartered accountant.

Enquire