How do I Rent Out my Shop in the UK: A Step-by-Step Guide

Are you a landlord or a soon-to-be landlord or lady looking to rent out your shop or retail unit? Just as it might be daunting for potential tenants – especially those renting for the first time- it can also be daunting for landlords and ladies, particularly at first. Both parties have a financial interest in the success of the business, and finding the best tenant for a retail unit is essential. In this article, we are going to give landlords a step-by-step guide to how to rent out a shop in the UK.

Here at Boxpod Commercial Property, we help commercial landlords find tenants for their properties, whether it is a retail unit or shop, office, warehouse, workshop, or storage unit. Before beginning the process of renting out a shop, it is important for landlords to determine their priorities and preferences for renting out their property. Are you looking for long-term or short-term tenants? To what degree can tenants adapt the property? What is the minimum rental income that you want/need?

Once the landlord has a good idea of what they are looking for, they can go on to set about finding the best tenants for them.

Finding tenants for a shop does not need to be stressful, lengthy, or expensive, but it does involve a certain amount of planning, having strict red lines but also flexibility to negotiate.

Know the Market

The first step in renting out a retail unit is understanding the market. This way, landlords can better understand the general tenant expectations as well as market rental rates.

By looking at other properties that are on the rental market, landlords can be guided to ensure that they are competitive. It is possible to look at estate agent and online listings – including here at Boxpod Commercial Property, to get a good idea.

There are a number of different points to consider, including the commercial property location, age, amenities, and modernity of the property, and landlords who offer flexibility in both physical elements (layout, renovations, interior aesthetic, for example), but also in some of the contractual elements (the length of the lease, individual responsibilities, or break clauses, for example). Of course, landlords need to ensure that they only offer aspects that fit in with their own rental ideals, and also what they can deliver.

How Can I Prepare a Retail Unit for Rent?

When it comes to preparing the commercial property for occupancy, it is important to think about what future tenants might want – and want to see. Whether the landlord is putting the property up to rent for the first time, or whether it has been let out before, any damages should be repaired, any updates carried out that might be required.

Landlords who have been previously renting the property out should consider how some things might have changed since the last time it was rented. This would, most obviously, be technological changes – perhaps ensuring that Wi-Fi and internet connections are as good as possible – many shops rely on the internet for payments, some orders, or customer interaction, for example. Other retail unit landlords might want to consider adding smart meters, air-conditioning, and heating, for example, or adding extra features that make the commercial property more accessible for people in wheelchairs. Safety features should also be updated.

Another important thing to note is that when any commercial property is rented to new tenants, landlords need to ensure that they have an up-to-date EPC (energy performance certificate). Between or before tenants move in is a good time to carry out any of the recommended measures from an EPC inspection. Not only is this more convenient for the landlord and tenant, but it will also make the retail unit more attractive to prospective tenants as it will be more energy-efficient and, consequently, result in lower energy bills.

It is useful to remember that showing flexibility in the property will widen the range of potential tenants for that particular property. Landlords might want to consider leaving rooms as empty as possible or show different ideas of how the shop could work for new tenants. Also, a lick of paint will help the commercial property to look clean and tidy.

How Can I Market a Shop for Renting Out?

The next step is to start to the market the commercial property. Landlords should start by having professional photographs taken of the property, showing its potential for businesses. It is recommended that professional photographs are taken, but some of the factors that should be considered include:

• Lighting and hour of the day – think about when the shop will be looking its best – in the morning or evening, with the lights on or off? For shops, a street view is essential as businesses are typically looking to draw customers in.
• Consider any special features in the retail unit – ensure that high ceilings or character-full cubby holes, for example, are highlighted.
• Ensure that both the shop floor and back rooms (offices, storage, etc.) are shown.

It is also important to get professional floor plans of the property, giving information such as dimensions (ensure that the shopfront and internal rooms’ dimensions are all provided, as well as ceiling height – retailers need to be able to ensure that their goods and displays will easily fit). It is also important to mark any furniture that is in the building, toilets, and doors, as well as any other permanent features on the plan.

It can be useful to bear in mind that properties that are ready to go will normally rent quicker than those that aren’t.

How Can I Find Commercial Tenants to Rent my Shop? 

For retail unit landlords, there are a number of options for finding tenants for their property. These can include advertising in trade publications, via word of mouth, and high street estate agents. However, landlords are increasingly using the internet to market their commercial properties. Every option has its pros and cons, and of course, every landlord needs to look at each option to decide which one serves them and their needs the best.

Most commercial landlords will be choosing between listing the property themselves and using an agent. Here at Boxpod, shop landlords can list their properties themselves on our website for only £12 per month.

When a property is listed with us, landlords can display the professional photographs, floor plans, their preferred rental price, a detailed description of the property including parking options and sustainability, and its location. They can then speak directly to the potential tenants when they make contact. 

The shop landlord and potential tenant can then go on to negotiate a contract to be an arrangement that both parties are happy with. As a retail unit landlord – or indeed any commercial unit landlord, it is essential that potential tenants are thoroughly vetted, to help to protect yourself and your property.

The process of renting out a shop in the UK does not have to be stressful and does not necessarily include handing control over the marketing and continued management and tenant relationship to agents. Through us at Boxpod, commercial landlords can list their property and deal directly with the tenants. By being prepared, the process can be simple and effective and get tenants into the shop as quickly and easily as possible.

If you have a retail unit to let, you can list your property with us here. Are you a business looking for a commercial property to rent? Have a look at our range of properties here.