For those interested in selling business properties in Los Angeles, issues can easily crop up that are beyond the seller’s control. However, in some cases, some of the issues that arise can be blamed on the seller’s mistakes. Here are a couple of mistakes that sellers of properties featuring commercial leases may make in California.
One common mistake that sellers make involves not approaching month-to-month leases properly. If a buyer is using a lender, the lender will want to see that the seller has a contractual flow of income that is greater than the mortgage payment. For sellers who may have some month-to-month tenants paying rent amounts that are below market, the sellers would be wise to lock these tenants into longer-term leases. If the property buyers will likely maintain these tenants, then the sellers may wish to get the tenants signed to one-year leases at the very least.
Another common mistake involves overpricing properties. All properties are unique, so establishing the perfect prices for properties can be complicated. The goal is to price a property in an aggressive manner without necessarily turning off interested buyers. If the prices of properties are too high, buyers may be reluctant to inquire about them, thus leading to lost sales opportunities for the sellers of these properties.
Selling properties featuring commercial leases can be rewarding if the sellers can market these properties effectively. However, in addition to dealing with the sales aspect of a deal, sellers must be prepared to deal with its legal aspects as well. An attorney can provide sellers with the guidance they need to navigate even the most legally complex deals with confidence in Los Angeles.