When you start assessing lessees for your commercial property, you have to think about several factors all at the same time. Will the business be able to afford the monthly payments? What kinds of traffic will this business bring to other businesses in the area? What does this lessee say about my business principles?
Before you just select the first applicant that comes in, you need to know some businesses you just need to stay away from. Here are 5 businesses you don’t want to rent to and why.
Bars draw in a bad crowd of people. While there are plenty of nice bars in the world, the fact is that most of them have to frequently call the police to calm the customers down. A bar may be suited in an area where there are already a lot of other bars located, but don’t stick it next to a workout center, art studio, vet clinic, etc. You’re just asking for trouble at that point.
The reason why casinos are not fit for lessees is because they encounter the same basic problems bars have. People in the casinos get unruly, loud, and obnoxious, and they are usually forced out of the establishment. Many casinos are open 24 hours a day, which means you may have people going in and out of your property all day long. That puts you more at risk of liability issues later on.
Hot Rod Shops
Hot rod shops are best left alone because of the wear and tear they will put on a building. The floors will quickly get filthy with oil, grease, paint, and other chemicals, and the walls will soak up the exhaust fumes. Unless your property is specifically set up for car repairs, avoid having these shops for tenants.
Fish stores come with a lot of risk because of the amount of water they have to keep on hand. One gallon of water weighs about 10-15 pounds. When you spread that over thousands of gallons for multiple fish tanks, you have a recipe for disaster. Not only could this lead to flooding (which leads to mold, water damage, etc.), but this could also warp your floors because of the weight. This would all end up being your mess to clean up.
Smoke shops may generate a lot of money, but they are impractical to rent out from a lessor’s perspective. Once the smoke shop leaves, you will either have to completely renovate the property or rent it out to another smoke shop. There will be no other way for you to get the smell of tobacco out of the walls and flooring. Vapor shops are just as profitable, but they are much less damaging to the buildings they are in. Opt for those instead.
Be careful before renting to the businesses listed above, and you won’t have to worry about your commercial property.