Investing in commercial real estate can be a lucrative opportunity, but it's important to approach it with knowledge and caution. As a buyer or seller, it's crucial to understand the market and make informed decisions to avoid potential losses. Here are some tips from Oakstrand Realty to help you navigate the world of commercial real estate.
Get to Know Your Tenants Before Renting
Before renting out your commercial property, it's important to get a good feel for your potential tenants. This means not only understanding their rental plans, but also their payment history and how they will treat your property. Treat the rental process like a job interview and your property like a valuable asset.
Consider Rental Properties Near Universities
If you're interested in purchasing rental properties, consider locations near universities. Keep in mind that your tenants will most likely be students, so be sure to include specific rules about parties and additional roommates in your lease. Also, be prepared for vacancies during the summer months.
Check for BBQ Facilities
If you enjoy summer BBQs, make sure the apartment complex you choose has outdoor BBQ facilities or allows you to install your own. This small detail can greatly impact your summer plans and the enjoyment of your tenants.
Choose a Building with Ample Space
When looking to purchase a commercial property for leasing purposes, opt for a building with plenty of space. Trying to lease out small dwellings can be challenging, as most people prefer a spacious living area. It's easier to manage a larger property with more units than a smaller one.
Don't Be Afraid to Go Big
When buying rental units for a commercial business, don't be afraid to invest in a larger property. In many cases, the minimum number of units required for a commercial license is low, so it's beneficial to have more units for potential profits. Managing 25 units is only slightly more difficult than managing 5.
Understand the Role of Property Representatives
If you come across a property that interests you, make sure to ask the representative about their involvement in the transaction. It's important to know this information in order to protect your own interests.
Consider a Broker with Commercial Experience
When choosing a broker, look for someone with experience in the commercial real estate market. This will ensure they have the knowledge and skills necessary to help you make the best decisions. Consider an exclusive agreement with your broker to ensure they are fully committed to your needs.
Success in Commercial Real Estate
While not everyone becomes rich from commercial real estate, it is possible to have a successful investment with the right knowledge, skills, and a bit of luck. Keep these tips in mind from Oakstrand Realty and make the most of your commercial real estate ventures.