Are you looking for strategic ways to maximize the amount of profit you’re making from your commercial property?
Commercial real estate has for many years been a favored investment by investors. Its attraction factors include low tenant turnover as well as longer held leases when compared to residential property. An investor can look forward to generating profit from commercial property through capital gain and or rental income. How else can you make your commercial investment more profitable?
1.Schedule routine maintenance and renovation
There is no denying the fact that people judge a property based on the exterior and interior. In this survey, 35% of people viewing property said they would buy it based solely on the exterior alone. 53% said they would still purchase the property regardless of what the interior looked like. It’s clear to see that the appearance of a place is a big deal when trying to secure well-paying tenants and or buyers. Scheduling routine building maintenance and having renovations every so often can go a long way in keeping your space in prime condition. Taking care of your commercial property will pay you well in future.
2.Have strict policies regarding utilities
It’s no secret that utilities can be expensive every month. In a bid to save money each month, enforce strict policies regarding power usage and water consumption. Did you know, for example, that in the U.S. 30% of the energy used in commercial buildings is actually wasted? This happens because people leave lights and appliances in offices on. The biggest culprits are computers which are left on ‘Sleep Mode’ instead of being shut down, printers, photocopier machines and HVACs.
3.Offer competitive rental fees to your tenants
With a neat looking premise, you’re sure to attract good offers. Take time to find out what similar properties in your complex or area are charging. See if you can match that price or negotiate an even higher rental fee. Eventually if your tenants like the place they can sign longer leases, which is the ideal win-win situation you’re looking for.
4.Run your affairs like a business
Nothing destroys maximizing profits you could potentially make from your commercial property than running your real estate portfolio callously. This is a business and you must treat it as such in order to realize good returns. What does this entail? Keeping good financial records, learning effective marketing strategies and implementing them, and having all other business affairs pertaining the property in order.
5.Take time to properly screen potential tenants
When all is said and done, one of the big issues that will determine your success or failure in this property space is the choice of tenants you pick. You must carry out comprehensive due diligence when screening the tenants looking to lease your property. The right tenant, looking for a permanent place to setup shop or office at the right price can make life extremely convenient for you. So don’t be quick to close with tenants before you’ve given yourself time to really go through a handful of offers.
Discuss different strategies to improve your profits with an expert
Would you like to talk to a property manager about ways in which you could potentially increase the profits from your commercial property? Our property managers are on hand to discuss issues you may have as a commercial property owner. Talk to one of our PMI Colorado Front Range advisors for more information on how we can assist by coming up with tailored solutions for your situation.