If you have invested in commercial property and not residential property then you have done it for one reason and one reason only; money. That is the big benefit that comes with investing in commercial property; it offers a more lucrative return, a big monthly income and a security that can’t be found elsewhere.
Now that you are the owner of a commercial building, though, there is only one question to be asked, how can you make more money from your real estate investment?
Think of it like this, a residential property makes more money as a multi-family dwelling than it does as a single home, that’s why so many landlords divide their properties into apartments. Well, the same goes for commercial property. The more separate premises you have, the more tenants you will be able to entice, and thus the more revenue you will be able to generate. Of course, this can lead to more complications such as the need to maintain communal areas, but the profit margin is usually worth the hassle.
Once again, just like with a residential property, one of the best ways to maximize your revenue is to add value to it. If you don’t know how you go about adding value to a commercial property, then it is worth speaking to experts in this area, like Anderson Contractors. To help you with some ideas of what will increase your bottom-line, though, make sure you design the layout of your space to include as many individual units as possible. The value of your property is going to be based on how much usable square footage is available. Other improvements include making the exterior look clean and the interior look modern. That’s what tenants typically want.
One of the ways a lot of experienced commercial property owners make more money is by installing solar panels. The reason for this is the technology behind solar panels has become a lot more accessible, meaning the installation costs keep on dropping. But that isn’t all because most governments provide incentives to do this. It is part of the Paris Treaty that aims to cut all carbon emissions. Of course, with the installation of solar panels comes direct cuts to certain overheads too, such as electricity costs. You may not think this affects you because you don’t pay the bills, your tenants do, but a tenant will be more inclined to pay a higher rent if they know the utility bills are low.
You may think that digital marketing has taken hold of the ad world, but you’d be wrong. Billboards still have a massive role to play. So much so, in fact, that they make up almost 65% of the budget spent on outdoor advertising every year. It is high-impact marketing. What this means for you is, well, there is another avenue you can go down when wondering how to monetize your property. Of course, this will depend largely on your location, but if you’re in an attractive spot in the eyes of advertisers then you could see potentially lucrative income stream hit your bank account.