For those looking for a way to make large profits in a relatively short amount of time, commercial real estate is great opportunity. It’s not for everyone though because of the huge investments and stakes.
If you are a landlord looking to rent out a house or apartment, it is crucial that you have the tenant fill out an application and go through a credit and background check. You do not want to be stuck with a tenant who won’t pay rent or trash your house, so also ask for references.
Before signing a lease agreement for an apartment or house rental, make sure you ask if they have a dumpster you can use to dispose of your trash or if you must pay separately for your trash to be removed. Some places even go as far as to tell you that you have to purchase a uniform trash can in a certain color with a maximum number of 2 bins allowed. Make sure you talk to your future landlord before signing anything.
If you are buying rental units to turn into a commercial business, don’t be afraid to go big. In many cases, the minimum number of units per property that requires a commercial license is low enough that you will want properties with more units than that. It is only incrementally more difficult to care for 25 units than for 5 units.
In order to protect yourself, make sure that the agreement that you and your broker decide on is put in writing. Add some conditions to it that will allow you to terminate them within five to ten days with a written notice if they are not doing their job well.
Take note that commercial transactions take more time, they are complex and they take more involvement than home purchases are. If you want things made easier, you might want to change what you’re getting yourself into. Yet, you should realize that the extra focus on, and length of, the process is essential in order to gain a better return on the investment.
If you rent out your commercial properties, always remember to keep them occupied. You’re the one who has to pay to keep the building maintained, and if no one’s renting them, you’re wasting your money. If you have lost several tenants or can’t seem to attract them in the first place, there must be a reason. It is your job to figure out the problem and correct it.
Be sure to include a right to terminate the agreement in so many days written notice with your broker in your written agreement. This way you will be able to terminate the relationship fast if you find that your broker is not doing a good enough job for you.
Commercial real estate is immensely profitable for some. Commercial properties require very large down payments, and it is crucial that you do your research to ensure you secure the best possible deal. If you want to be sure to find success in this, then adhere to the advice given in this article.