To rent out a commercial property, first set a realistic price based on the neighborhood and size, then describe the space accurately and specify who pays the utilities. Publish a listing with photos, area, address, and price, vet the tenant before signing, and put the lease and deposit in writing. That way you rent out the property faster and with fewer risks.
A commercial property differs from a residential one in that the tenant usually uses it for a business registered under the Commercial Register Act. Therefore, the contract must clearly state what the property is used for, who does the renovations, and what happens to the equipment when the tenant leaves. An owner who has prepared these details wastes less time on clarifications.
The markets in Sofia, Plovdiv, Varna, and Burgas are different. A property on a boulevard in central Sofia and a property in an industrial zone near Plovdiv do not have the same price, even with the same area. That is why comparison starts with the address, not the square footage. Before you publish, answer three questions: what the tenant is looking for, what you offer, and what is left out of the deal.
- The price is checked against the neighborhood and the type of activity, not just the square footage.
- The listing works when it has exact area, address, price, and photos of the entrance and facade.
- The contract must state the purpose, term, deposit, and who pays the utilities.
- Vetting the tenant and the handover protocol protect both parties.
How to set the price of a commercial property
The price is determined by three things: location, access, and condition. A property with a shop window on a busy street is worth more than the same property inside the neighborhood. Parking, loading access, and a separate entrance change the offer. If the property has leaks or old wiring, the tenant will ask for a discount or repairs at your expense.
Compare at least five listings in the same area. Look at the price per square meter and what it includes. One listing may seem more expensive but include a service charge and parking. Another looks cheap, but the tenant pays separately for security and cleaning. Commercial properties priced below the area average often have a reason: no parking, weak electrical capacity, or restricted access.
What to check before you set a price
Get out the title deed and the sketch. Check whether the property is approved for commercial use. If the tenant wants to open a restaurant, they will also need approval from the municipality and compliance with hygiene requirements. These things are clarified before signing, not after the renovation.
Check the fees that burden the property: building tax, waste fee, entrance fee, security subscription. Decide which remain with you and which pass to the tenant. Write them in the contract in clear words.
Who pays the utilities
The usual practice is for the tenant to pay electricity, water, heating, and waste. The owner covers building tax and waste fee, unless otherwise agreed. If the property has central heating, clarify how costs are allocated during the winter months. Disputes over utilities are the most common cause of tension after signing.
How to write a listing for a commercial property for rent
The listing should answer the questions the tenant asks on the phone. Area in square meters, ceiling height, number of shop windows, availability of a bathroom, electrical capacity, parking, entrance. If you omit the capacity, you will get calls from people who want to open a bakery or a repair shop, and you cannot offer them that.
Photos determine whether the listing gets opened. Take them in daylight. The first photo shows the facade and entrance, because that is how a person understands where the property is. Then a general view of the space, the shop window, the bathroom, and the loading area. Do not photograph just a corner of the room. The tenant wants to see whether their truck can stop in front of the entrance.
What to write in the text
Write specifically. Instead of "suitable for any business," write "suitable for a shop, office, or salon, with a separate entrance and a street-facing shop window." Instead of "good condition," write "major renovation in 2022, new plumbing and electrical wiring." Such details reduce pointless viewings.
State the price and what it includes. If there is a deposit, write how much it is. If you do not accept certain activities, say so immediately. This does not put off serious candidates; it saves you conversations.
Where to publish
The listing should be where the tenant searches by city and neighborhood. In the real estate category of EX & GO, the listing is visible with price, photos, and city, and the buyer filters by district and sends a message directly to the seller. The profile shows the history of listings and reviews, which helps both sides assess who they are talking to.
Before you publish, read the platform's listing rules at /bg/rules. They describe what data is mandatory and what is removed during review. If you have a question about how to edit a listing or how to reply to a message, the answer is in /bg/support.
We see that listings without a specified area and without a photo of the entrance receive significantly fewer inquiries than those with complete information, and the most frequently asked question is whether the price includes utility costs.
Before you publish the listing, stand in front of the entrance at a different time of day. If at 8 a.m. there is no place to stop a car in front of the door, and at 6 p.m. the street is jammed, write that in the listing, because the tenant will discover it on the second day and ask for a discount.
How to vet the tenant and avoid fraud
Vetting starts with the company. Look it up in the Commercial Register and see whether it is active, who represents it, and whether there are registered liens. If the candidate is an individual, ask for an ID document and write the details in the contract. Do not accept a deposit transfer from a third party who is not a party to the contract.
Fraud in commercial leasing rarely looks obvious. More often, someone wants to rent a property, pays the first month, moves in equipment, and stops paying. Therefore, the deposit should cover at least one month's rent plus a reasonable amount for restoration. Ask for prepayment for the first month before handing over the keys.
Documents worth asking for
Company registration certificate or extract from the register, ID document of the signatory, manager's resolution if someone else signs. If the tenant will renovate, ask for a description of the works and a timeline. If they will put an advertising sign on the facade, clarify whether registration with the municipality is required.
What the lease agreement must contain
The contract is the document that resolves disputes. It records the parties, the property with exact address and area, the purpose, the term, the rent, the payment method, the deposit, and the allocation of utilities. Without a purpose, the tenant could open an activity you do not want in the building.
Also agree on what happens in case of late payment. A common clause is interest or the right to terminate after a certain period of delay. Write down the termination procedure: how much advance notice is given to the other party and what happens to the improvements. If the tenant has invested money in renovations, state clearly whether they remain with you without compensation.
Deposit and handover protocol
The deposit is described in the contract with an exact amount and the conditions under which it is withheld. When handing over the keys, make a protocol describing the condition and the readings of the electricity and water meters. Photograph the premises on the day of handover. This protocol is the evidence in a dispute over damages.
Taxes and registration for the owner
Rental income must be declared. An owner who rents out a property includes the income in their annual tax return and owes tax under the Personal Income Tax Act. If you are VAT-registered, rent to a corporate tenant is taxed under the general regime. Check the current deadlines and rates on the Consumer Protection Commission website, as well as in the information from the National Revenue Agency.
Building tax and waste fee are paid to the municipality where the property is located. If the property is in Sofia, the rates are set by an ordinance of Sofia Municipality. Payment is not automatically tied to who uses the property, so it is good to have it written in the contract.
Comparison: direct rental, agency, and managed rent
| Criterion | Direct rental | Through an agency | Managed rent |
|---|---|---|---|
| Who finds the tenant | You | The agency | The management company |
| Cost | Time and publishing | Commission, often one month's rent | Percentage of monthly rent |
| Control over selection | Full | Limited | Low |
| Who collects the rent | You | You | The manager |
| Suitable when | One property, clear terms | No time for viewings | Several properties in different cities |
If you have one property and know the neighborhood, direct rental is usually more profitable. If the property is in another city, managed rent solves the logistics but takes away control over selection. An agency makes sense when you are looking for a corporate tenant with specific requirements and have no time for viewings.
Checklist before publishing the listing
- Title deed and sketch at hand.
- Exact area, height, number of shop windows and entrances.
- Electrical capacity and type of heating.
- Monthly price and what it includes.
- Deposit amount and contract term.
- Who pays electricity, water, waste, building tax, and security.
- Photos of the facade, entrance, premises, and bathroom.
- Conditions for renovations and for placing a sign.
- Contact phone and viewing hours.
- Check the listing against the platform rules.
When you compare offers, you also see what other owners in the same area are asking. publish a listing If you are looking for a corporate tenant for a specific activity, also look at listings from the industry to gauge what terms the market offers. commercial properties
Frequently asked questions
Do I need to register the lease agreement anywhere?
The lease agreement for a commercial property does not have to be recorded in a public register to be valid between the parties. Recording is needed if you want the rights to be enforceable against third parties, for example if the property is sold. If the tenant registers a business at the address, they file the documents with the Commercial Register. Check your specific case with a lawyer.
How much deposit is normal to ask for?
The usual practice is a deposit of one to three months' rent. For new renovations and expensive equipment, owners ask for a higher deposit. What matters is that the amount and the conditions for withholding it are written in the contract. Also clarify whether the deposit is indexed when the rent changes.
Can I refuse a certain activity in the property?
Yes, if you include it as a restriction in the contract. The permitted use is part of the terms and the tenant must comply with it. If they later want to change the activity, this is done with an additional agreement. Without such a clause, it is difficult to object once the activity has already started.
Who pays for renovations to the property?
It depends on the agreement. Typically the owner covers the main systems, while the tenant does the finishing works at their own expense. Write down who pays for what and what happens to the improvements upon vacating. If the tenant invests a significant amount, agree on a longer term so they can recoup the cost.
How should I react if the tenant stops paying?
First, check what the contract says about late payment and termination. Send a written notice and keep proof of delivery. If payment is not made, follow the procedure in the contract and, if needed, consult a lawyer. Do not remove the tenant's property without legal grounds.
Do I have to pay tax on the rent?
Yes, rental income must be declared and is taxed. An individual owner includes the income in their annual tax return. If you are VAT-registered, the regime is different. Check the current rules and deadlines in the information provided by the National Revenue Agency before filing your return.
How do I know if my price is realistic?
Compare at least five active listings in the same area with a similar size. Look at what the price includes and how long the listings have been published. If your listing does not get inquiries within two weeks, the reason is usually the price or incomplete information. Change one of the two and monitor the result.
What to do first
To rent out a commercial property, start with the price and the documents. Check the offer against the neighborhood, get the sketch, and decide who pays the utilities. Then write a listing with area, address, price, and photos of the entrance. Vet the tenant in the register before you sign.
The contract and the handover protocol are what will protect you months later. Set aside one afternoon for them, instead of leaving them for the day of the keys. If the property is in another city, consider whether managed rent is worth the lost control.
Publish the listing where the tenant searches by city and neighborhood, and keep it up to date. When the terms are clear from the start, the conversation with the candidate goes faster and more calmly.