There are good and bad areas in the commercial real estate industry. Some industries are struggling because of work-from-home jobs. However, other industries, like retail and multi-family homes, are thriving. This means commercial property is still a great investment.
But how can commercial property owners manage their investments with success? Follow these investment management tips to manage your properties.
Find the Area Location
Not all locations are created equal with commercial estate. This is especially true for retail locations, where you may want to be located near larger population centers in Denver to attract customers.
One of the best investment management tips to follow is to pick the right location. Consider your target tenants and their needs for commercial buildings. Find a building in a location that adequately meets those needs.
Understand Your Total Costs
It's easy to only look at your rental income and monthly mortgage when calculating your profit and loss. It gives you a general idea of how much you're making, but it doesn't tell the whole story.
Make sure to consider all expenses when looking at these numbers. You have monthly maintenance, utilities, cleaning, and other facility costs. Calculate your average monthly expenses over time to ensure you make decisions on accurate numbers.
Invest in Maintenance
In trying to keep costs down, you may consider postponing maintenance instead of turning it into a regular thing. Although this will reduce costs in the short term, it can become much more costly later.
Unmaintained buildings run the risk of encountering more serious issues. These issues are typically much more expensive than the cost of routine maintenance. Set up a property maintenance schedule and stick to it.
Form Good Tenant Relationships
The last thing you want as a landlord is tenants who don't stay. Ideally, the people you sign leases with will stick around for years. You lose money every time someone doesn't resign a lease and opens a vacancy.
You can reduce your vacancies by investing in good tenant relationships. Work to make your properties as pleasant as possible to encourage good tenants to stick around.
Get Professional Management Help
Commercial buildings take a lot to manage. They aren't single-family homes that don't require upkeep all the time. They are often large and require more care when maintaining.
If you want to streamline this process, look for property management companies to get help. A professional manager can help with every aspect of commercial property management and streamline your operation.
Commercial Property Owners Have a Lot on Their Plates
Commercial property investment doesn't come with a guarantee of success. Depending on your property management strategies, you may end up making mistakes that cost you money and lead to unprofitable investments. But commercial property owners can follow the tips above to improve the profitability of their investments.
Are you looking for a Denver property management company to help manage your commercial properties? At PMI Cedarboldt, we offer many property management solutions and real estate advice in Denver to our clients. Contact us to learn how we can help maximize your real estate investments.
