Investing in commercial property can certainly have its financial benefits. Typically, this type of investment has the potential for higher earnings than residential real estate. But, there are a lot of fees that are also attached to owning any real estate property. These fees need to be considered when you’re figuring out the right price to set your lease for.
You’ll need to consider any costs associated with your property. Consider if you’re going to include utilities and cleaning services into your lease or if these are things that the tenant will need to pay for. If you’re covering these costs, then you need to add them to your monthly tally.
Don’t forget to consider what you’ll be paying in property taxes and your monthly mortgage payments. You’ll also want to consider maintenance costs. Additionally, it’s a good idea to maintain a reserve fund. This can help cover any repairs needed. in the future. If you plan on hiring a property management company, you’ll want to factor in these costs as well.
As a commercial property owner, there are several monthly expenses you’ll need to plan for. Thankfully, two of the ones mentioned above can actually be good for your wallet over time. Spending money on preventative maintenance could prevent the need for larger repairs later on. It can also improve tenant retention.
Using a property management company can also save you time and money. Not only can a property management company handle day-to-day maintenance so you have more time to get things done, but they can also lower your vacancy rates.
Once you’ve figured out what your monthly bills will be, you’ll know how to calculate your commercial lease. Before setting a price though, you’ll want to do some research to find out what local properties similar to yours are being rented for. Check out competitors in your area that have similar square footage and amenities. This can help you formulate a reasonable price to set your lease. You want it to be competitive, not too high, or too low. This will ensure you attract tenants, but also make a good income.
If you’re looking to get your commercial property listed, contact us. We want to help you set the right price, market your investment and find the right tenants. We can also help it stay well-maintained. Visit our website to learn more about us and what we have to offer: https://www.sugarhillpropertymanagementinc.com/.
