Should You Use Rent Incentives?

On high streets up and down the UK shops are standing empty as are business units in areas where demand is low. So how do you attract new tenants to sign up in a tough market? The answer can be to use incentives to make renting your premises more appealing.  

One thing is certain and empty unit is not going to be generating any income so offering an incentive to a tenant can be a good way to at least get a tenant in the property and paying rent. Some ways to offer incentives include:  

Offering a rent free period  

This is a popular way to attract tenants and can work well in retail units. It will give the tenant an opportunity to get themselves set up without all the added pressure of paying rent and other bills. The landlord can reap the benefit when the tenant becomes established while the tenant benefits from protecting their cashflow from the beginning of their tenancy.  

Variable rent  

This is another incentive you could offer which could ease the pressure on a tenant. Rather than pay the same fixed amount each month, an agreement could be made to reduce the rent in quieter periods or seasons. Rents can be increased as well as decreased during the tenancy to ensure the landlord keeps their tenant and the tenant is less likely to action a break clause.  

Clearly these incentives can help both the landlord and tenant through difficult times but any agreements should be binding and free from ambiguities. This will avoid any problems when if a dispute over rent payments arises in the future.