How to protect your property investment and keep it profitable
Category Property Tips
Owning a commercial property has its perks though there are certain situations that may occur that may put you in a difficult position so it’s important to take precautions to ensure that your investments are safe and profitable.
While you always expect to have a tenant, there may be certain times when you are without a tenant and your property is vacant. During this time, you won’t be getting any rent. If you have bond repayments, you may find that you are short of cash. To prevent having this issue, you should budget sufficient funds to be kept available in the event that your property is vacant for an extended period of time.
Unexpected maintenance and repairs
When drawing up a commercial lease, it is essential to state who will be responsible for repairs and maintenance of your property. Even if the tenant is responsible for damages, the owner should keep funds available to cover the cost of any unexpected repairs that he may in fact be responsible for. It is vital to sort out any repairs or maintenance asap before the issue becomes any worse or even worse you ruin the relationship with the tenant.
Keep abreast of trends
Keeping in touch with the latest trends and innovations will make your property more attractable to higher paying tenants as well as more attractable than less trendy buildings. Making sure that your building is environmentally friendly, energy efficient or making use of solar panels will reduce the negative impact to the environment that your property may cause. With many businesses being more environmentally aware, this should make your property more desirable. Many older buildings are getting makeovers to match the newer trendier properties in the area. A makeover will make your building more attractive to potential tenants and also makes current tenants feel that they are important to you.
Sufficient time and capacity
Managing a commercial property takes time and so does dealing with tenants and issues that may arise. It is worthwhile having an experienced team who can handle any issue that may arise as often the issue is unique to your property or tenant and it is vital to get any issue dealt with asap to prevent any difficulties to the tenant. Another option is have a managing agent in the form of a property management company who has the manpower, time and resources to deal with day to day running of your property.
View our Commercial Properties for sale here: https://www.sealedbid.co.za/results/commercial/for-sale/
Author: Ariel Katzen