Start growing your commercial portfolio

Real estate an ideal investment that leads to financial freedomImage Credit: Supplied

Letting go of your money for a viable investment is very risky, but landing a great deal for an asset that shows signs of good revenue can be financially satisfying.

While residential properties are widespread, there is also a wide range of commercial properties that you can invest in. Renting out warehouses, offices, retail and industrial areas, and mixed-use buildings provides one a great income stream and, as every type of business closes at the end of each day, you get the night to yourself. You need not worry about urgent home repairs or delayed payments, and you only deal with the mortgage, leaving the water and electricity expenses and upkeep to the lessees.

Tenants are not pleased when you come only for the payment. Establishing good landlord-tenant relationships and managing well your tenants’ leases build client loyalty and attract new ones. Show personal involvement by visiting and inspecting your property for some valuable repairs, maintenance on common areas and safety concerns to avoid disputes.

Commercial investments offer decent annual returns and a higher net rental income. Depending on the location, zoning restrictions or market conditions, you may also review and adjust the property pricing according to the usable space. Add some attractions and make some attractive deals like rent-free months or free fit-out schemes to lure more tenants. Secure alarm monitors or emergency services to avoid any forcible damages, break-ins or fires.

As vacancy or retrofitting the space may take a little while after tenancy, commercial properties require a higher down payment for a longer lease, which plays to your advantage. Investors, therefore, have to look out for improvements to the building quality and promote the accessibility, visibility and desirability of the location.

Eventually, the success of any commercial venture is fanned by the local, national and international economy, and growing population.

Handy Hints:

*  Buy properties that have a positive cash flow and maintain them

* Ensure to always meet the satisfaction levels of your tenants

* Educate yourself and diligently analyse commercial prospects

Source: Alfred Ocianas, Special to Properties

The writer is a freelancer


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