How to Maintain the Value of Your Commercial Property
How to Maintain the Value of Your Commercial Property
Investing in commercial real estate is an excellent way to secure yourself a solid passive income or substantial future profits. Still, even though purchasing a commercial property is a lucrative venture, many people fail to realize that the work doesn’t end with signing on the dotted line. Unless you want your hard-earned money to go to waste, you need to put in some effort and time to keep your property attractive in terms of its worth. If you dive into it unprepared, you might find yourself overwhelmed by the number of tasks and chores you need to stay on top of. Fortunately, this is easy to prevent – all you need is to learn how to maintain the value of your commercial property.
Stay on top of cleaning
Would you pay big money to rent or buy an unkempt property? Probably not. Even though dirt and grime are relatively easy to keep under control, it often happens that landlords don’t pay enough attention to the cleanliness of their commercial spaces. And this is a huge mistake if preserving or increasing your building’s value is your goal. Not only does a dirty space look unattractive, but a lack of cleaning can also lead to more severe issues that require more time and money to resolve.
Therefore, it might be good to devise a cleaning schedule and stick to it. The windows, entrances, hallways, stairways, and even the building’s exterior must look presentable. And not only for a few days after you or your tenants move in! If this sort of maintenance doesn’t fit into your schedule, consider investing in janitorial or maid services. When organizing a commercial move, it’s wise to look for help with the entire relocation, and the same is true when it comes to keeping the space clean.
Do not skimp on safety
Safety and business should be inseparable, no matter the industry you or your tenants are in. So, if you want to maintain the value of your commercial property, you must pay special attention to making it as secure as possible for the people using the space. This will protect you from costly lawsuits and help keep your tenants happy.
Security cameras are not optional!
If you’re reading this before you’ve even acquired your commercial property, make sure to consider the area the building is in and not only the building itself. Overall, neighborhood safety presents the foundation of maintaining your property’s worth. Security cameras, sufficient exterior, and interior lighting, gates, and other protective measures will only add to the feeling of safety, so make sure to invest in them.
Furthermore, make it your top priority to regularly check the property. Focus on the wiring, plumbing, roofing, flooring, structural integrity, and anything else that could potentially endanger someone. It goes without saying that you should hire someone to do this for you if the aforementioned is not your forte.
Focus on the efficiency of the building
You could have the biggest, most attractive commercial property, but it would still be considered less valuable if it is inefficient when it comes to its energy and water consumption. And it’s understandable – no one wants to set aside a hefty amount of money each month only to have to fork out even more for sky-high bills. Not to mention the importance of being eco-conscious in today’s world.
Sustainability benefits everyone.
The best way to increase and maintain the value of your commercial property is to get your building LEED-certified. Although this project will require an investment on your side, keep in mind that making your property greener will bring you tax breaks, grants, and the ability to charge higher rent! But why is everyone so crazy about sustainability? It’s simple – people prefer businesses that care about the environment, so business owners don’t mind paying more if this means more clients and more revenue. And the lower utility bills are not too shabby either!
Do not put off repairs and upgrades
What happens when you ignore a toothache? In most cases, it turns into a massive headache. The same is true when it comes to your commercial property. If you fail to address minor repairs on time, it’s less likely they will simply heal on their own and more likely that they will turn into something much more expensive and time-consuming to fix.
So, make sure to regularly check the roof, vents, HVAC systems, etc. If your tenants report an issue, deal with the repairs right away. Moreover, set aside a budget for necessary upgrades and renovations. Just because everything is in working order doesn’t mean you don’t need to invest in your building. Keeping up with the times is imperative in commercial real estate.
Maintain the value of your commercial property with satisfied tenants
Finally, it’s not only the building that you need to maintain – good relationships with your tenants matter too. By being a good landlord, you will build your property’s reputation and ensure sufficient interest among quality tenants. Luckily, this shouldn’t be too hard. All you need is open and honest communication. Listen to your tenants’ complaints and do everything you can to address them. If you manage to do everything mentioned in this article, you shouldn’t have trouble keeping your tenants happy! This is one of the key things that will ensure success when the time comes to contact your commercial real estate agent.
Meet with your tenants to discuss issues and concerns.
In conclusion
If you want your investment to remain fruitful in the years to come, you must put in an effort to maintain the value of your commercial property. Even though regular upkeep is a vital part of owning real estate, it is also the part that often gets overlooked. With that said, it’s essential to keep in mind that you are actually losing substantial amounts of money every time you put off what needs to be done, be it cleaning, minor repairs, or major upgrades. So, if property depreciation is not on your agenda, make sure not to neglect your chores!
Meta description: Wondering how you can maintain the value of your commercial property? Read this article to learn everything you need to know.
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