Commercial Property: How to Keep Your Tenants

 A good commercial property investor and owner knows that in order to keep earning from assets, tenants must be kept happy. Besides, with nobody interested to lease, it’s impossible to get a rent let alone a profit that screams ‘financial freedom’. So what’s the secret then? How do landlords and investors keep their tenants and do away with rent vacations for their commercial property? Well, here are a few tips how.

  • Keep things clear early on. – All rules and terms of the rental must be clear between both parties and signed to a contract. Doing so safeguards the rights of both parties and makes the responsibilities of each one crystal clear.
  • Prepare the unit. – Interested tenants will always want to visit and inspect before they commit. Be sure to always have the space ready in case someone decides to pay a visit.
  • Be at the top of repairs. – Repair responsibilities should be established early on. Also, it is a must to always be on call to ensure that any needed emergencies are solved whenever they decide to pop up. Tenants would absolutely hate it to have to call again and again just to get, say a broken pipe, fixed.
  • Always be available. – If you can’t do everything on your own, hire a property, manager instead. Someone has to be on call and available for any inquiries and concerns. In the same manner, it would be beneficial to call or visit tenants at least once a month just to check on their concerns.
  • Offer incentives. – To encourage your tenants to stay with you for long, you can establish a rewards program of sorts. For example, a discount may be given if rental dues are paid in advance or a commission is given to those that can refer a new and qualified tenant.
  • Keep rental prices reasonable. – Depending on several factors like location, space, foot traffic and the like, the cost of every rental unit will differ. However, the secret to ensuring that one profits without being too expensive lies in reasonability. If the costs to renting your commercial property, or part of it, is too high then the tendency is clients are sure to look somewhere else. However, if they are reasonable enough, they become more competitive. Putting a price tag can be difficult here so if you don’t have any experience, it’s best to consult an expert about it.

Choosing the Best Commercial Real Estate Investments

We always want to make the most out of our purchases and ensure that we get the value for our money. No one wants to lose in this kind of game especially if cash and fixed assets are at stake. You do not want to buy a pebble for the value of a diamond, would you? You certainly would not hence you will want to choose only the best commercial investment property for sale out there.

But first, what are they? Commercial real estate refers to properties whose purpose, use and functionality serves the needs of companies and businesses. In many cases they are used for offices or branches and the like. Of course they may be furnished by business entities as they deem necessary and for purposes of operations and transactions. When scouting for one, here are some of the questions to ask as you go.

commercial-Real-estateQuestion # 1: Where is it located? You’ve probably heard this time and again: location is key. This is true for any real estate investment whether for commercial, industrial or residential purposes. For commercially used ones, the closer it is to relevant establishments then the better it is situated.

Question # 2: Is it accessible to your target market? Of course even if the property is in the heart of the metropolis if you’re target market cannot access it then it’s all in vain. You have to invest in properties that suit and reach out to your audience.

Question # 3: Are there any specifications you seek? Are you in search of one with a huge parking area, a three flour building, a balcony or a large garden? How about a view of the beach or the city? Know if there are certain specifications that you want.

Question # 4: How are you going to finance it? Commercial assets like all other real estate investments need a huge sum for financing. With that said it entails that one has to plan and choose carefully what mode will suit them best. Consider those that will be most beneficial to your case.

Question # 5: What is your ideal useful life? When planning your commercial real estate investments you have to take a look at the estimated useful life of the property. This pertains to the expected time period in which the said asset is deemed to be useful.