Many of the business clients we work with invest their wealth into properties and real estate. Commercial Real Estate has always been said to be a “safe bet” as an investment for your wealth. But as anyone who owns commercial real estate can tell you, it can come with it’s share of headaches. So What are those headaches?
We Have All Had That One Bad Landlord
First you have to ensure that the properties that you own or want to buy are in good shape so that renters will not be turned off by the appearance and amenities. This costs time and usually lots of money. Next, you need to find and be able to properly attract, and qualify potential tenants. This requires an effective advertising and marketing campaign, money, and staff to assist you with this. Next, you need to find out what is the going rate for the space that you intend to rent, and be open to the fact that most tenants are going to want you to “adapt” or “customize” the space they want to rent if they are going to sign a long term lease. This requires general contractors, project management support, and again more time and money. Lastly, you need to ensure that those that do rent, pay rent on time, do not destroy your property or common areas, that their needs for repairs or upkeep are met, and that they stay and renew their leases. You need a property manager, staff and money for these things to happen.
While we absolutely believe that real estate is for the most part a safe investment, as you can clearly see, there is more to owning commercial real estate than just buying and watching the money fly in. If you would like to know more about how we help folks make money in this industry, please contact us or read more here.