If your commercial property isn’t earning enough for you to stop working a nine-to-five job, then you are not doing a very good job at maximizing the potentials of that property. Or maybe your property managers are not doing what they’re being paid to do. Commercial properties are one of the best investments and sources of passive income. But that doesn’t mean that these properties will continue generating income without prior commitment and sacrifice on your part.
The biggest mistake you can do as a property owner is not to weatherproof your building. Weatherproofing means making sure the building can withstand all the seasons—from the scorching heat of the summer to the freezing cold of winter. If a building isn’t weatherproof, it is susceptible to rust, molds, and water damage.
A simple way to waterproof your flooring is to use waterproofing epoxy coating. This low-maintenance flooring material is durable. It can last for years without the need to reapply the coating. It is also design-flexible, which means you can choose from a range of colors and patterns that will suit your building.
Increasing Available Area for Rent
You can have a small commercial property and still earn more than landlords with a bigger property. The trick is to use architecture and design to maximize the rentable space. The discrepancy between the total land area and the rentable space is due to poor design and inefficient use of space. Review the floor plan of your property and see if there is more space that you can rent out.
Set a Profile for Your Property
Landlords should set a character for their commercial property. It is not true that landlords shouldn’t concern themselves about the success of the tenants. The landlords lose, too, when tenants need to close and leave. Help your tenants operate at an optimal level. For example, cluster retail stores together in one part of the building. The second floor of the building can be left for restaurants and take-out nooks.
This way, the tenants are attracting the same clientele to that part of the property. Grouping similar businesses will help improve the overall look of your commercial property. It will draw the clientele not only to a specific business but to its neighbors, too. With this setup and with more successful tenants, the landlord can ask for a raise in rent.
Maintain the Building Properly
In the short term, it may be more economical not to do preventive maintenance work on the building. After all, you need to save as much as you can. But what does this tell your tenants? When it’s time to ask for a raise, you will have to face objections from them. Some may even leave if they feel that you are not taking care of the property as you should.
Your commercial property should be a source of income and not of expenses. If it’s making you regret buying it, it’s not because commercial property is a bad investment. It can only be a bad investment if you don’t know how to improve its value to your tenants.