Leasing a rent by owner property comes with some advantages but it also has its disadvantages, and we will look at both sides of that coin in this article by Box Office Warehouse Suites, offering creative and unique industrial space and commercial property for rent. Call us at 817-439-3224 for more information on properties in the Greater Fort Worth Metro area.
What follows is a generalized overview of the pros and cons of renting from a private property owner rather than a real estate brokerage/management firm.
The pros of a rent by owner property.
Let’s list the main pros and then speak a bit about them:
- More personalized relationship
- Easier communication
- More flexibility
- More privacy
- Fewer rules
There is generally a more personal interaction in a rent by owner arrangement; this is not 100% accurate, but oftentimes the case, and that personal interaction can be soothing and assuring. Finding an accommodating landlord/building owner is the best-case scenario but finding them is not nearly as easy as it may sound. Remember, this is a business transaction, it means for both parties and as such is an important one, so plan for the worst and celebrate the best if you should come across it.
The cons.
On the flip side of this discussion, we have these cons:
- Slower response to maintenance requests
- More personal responsibility
- Fewer amenities offered
- Property more likely to be sold, meaning new negotiations for you, the renter.
Again, these are general statements and do not apply to all circumstances. Historically, it is more likely that the industrial space you are renting will be sold to another company/owner in a rent by owner transaction, which can mean complications for you and your business. Still, as many victims of gentrification can tell you, there are no guarantees no matter who your landlord is.
Which is best for you?
Questions you should ask when speaking to a private owner:
- Are any utilities included with the rent? (Clarify how much the rent is, as well, even if it was stated in the listing.)
- What day is rent due? Is there a grace period? What’s the late fee?
- What other fees and deposits are required, and which are refundable?
- How long is the lease? (Make sure you are both in agreement as to the length of the lease.)
- How do I pay rent? (Avoid a landlord that wants cash.)
- Can I pay rent online?
What this all means for you? There is no clear answer to this question. Renting by owner can be advantageous and benefit some people; it can also be a nightmare scenario. In the end, you must gather all the information possible, meet with advisors, and make an informed decision based on information and your gut feeling.
A final word about Box Office Warehouse Suites.
Box Office Warehouse Suites is locally owned and operated, one of three business parks found in the Fort Worth Design District, along with Paddock Place Office Suites and Golden Triangle Business Park. Call us for a tour of our properties. We offer all types of industrial space and commercial property for lease.
