Commercial real estate isn’t a get-rich-quick scheme, it takes a lot of hard work, and you really need to know what you’re doing. That said, for those with the gumption, investment properties can prove very profitable. If you’re planning on selling or leasing your commercial investment property, here are a few things you should keep in mind in order to maximize your profit.
One of the best ways to maximize the value of your commercial property is by maintaining the condition. A clean, modern space will help you increase your profit above an outdated space that needs work. An appealing property doesn’t take much to stand out. It can be as simple as investing in a fresh coat of paint or manicured landscaping.
Incorporating small things into a yearly checklist like regular HVAC system maintenance will reduce future costly repairs. Mashvisor suggests contracting with a repair company to handle routine checks and repairs on unseen systems such as plumbing, electrical, and heating. Making this initial investment will help you in the long run.
Although you may be eager to sign tenants quickly, you need to make sure to follow the proper procedures. Potential tenants should fill out a commercial lease application and agree to an interview and background check. You can also request a credit check. These insights will help give you the peace of mind that you are inviting responsible tenants into your building. These steps are also necessary to ensure the tenant’s reliability and ability to pay the lease. Wasting time with an unsuitable tenant will only increase your vacancy time, reducing your profit.
Make it as simple as possible for tenants to pay rent each month. Set up recurring online bill pay, so the money is directly deposited to you each month. Setting up online bill pay takes the stress off of you and eliminates the possibility for your tenant to miss a payment. If you choose another billing method, make sure to enforce late fees for any missing payments. Include this rule in your lease contract.
Find and keep long-term tenants to reduce vacancy and turnover time. Do this by communicating on expectations and lease time before anything is signed. Fostering a good relationship with your tenant will improve transparency, so you don’t get caught off guard. If your tenant seems satisfied, consider offering to extend the lease. In case you are too busy to take time to speak with tenants regularly, consider hiring a property manager to handle rent and other concerns.
When selling commercial real estate, effective marketing is paramount to maximizing profits. What are some likely uses of the property? What is the location like? You should know the strengths and weaknesses of your investment property and work to advertise its best qualities. Knowing demographic information about the surrounding area can also prove useful for marketing purposes.
Knowing what similar properties in your area sell for is a great bargaining chip. You will want to know if your desired price is out of line with your competition. This will protect you from lowball offers and help you market your property more effectively. Your research could also give you a big picture idea of what the commercial real estate market in your area is like. Are properties selling quickly? Are they languishing on the market? Are prices trending up, down, or stagnating?
After doing the necessary research, you should have a fair estimate of what your property is worth. Although it may be tempting to take a slightly low offer and run with it, a patient approach could prove more profitable. This is one reason to work with a local broker who knows the areas and understands the market.
Find the Right Real Estate Broker
Commercial real estate sales can be tricky. It’s impractical to navigate the labyrinth of local, state, and federal laws alone. A real estate broker with experience selling property in your area will be familiar with the laws surrounding commercial real estate. A good broker will also bring a deep knowledge of the local area to the table and should know exactly how to market your property in order to make a quick and profitable sale. If you want to get the maximum profit from your commercial real estate, a knowledgeable broker is a requirement.
Contact us at Ullian Realty today for more information on leasing and selling property in the Melbourne, Florida area. Our real estate process puts us a step ahead of the rest, and we will help you get the maximum profit from yourinvestment property
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