Your commercial property is an investment. You purchased it hoping it would bring in a steady and reliable income. In this blog, we’ll lay out some helpful tips on how to get the most out of your property and keep the value up.
Consider the rent
When it comes to maintaining a good value, you need to consider what you can charge for rent. The thing is, the property value impacts how much the owner can rent it out for. Choosing a rental rate takes careful consideration. You want to make a good income, but you also need to make sure the property is not overpriced. If the rental cost is too high it could leave you with frequent vacancies.
When determining what rate you’ll set your rental at, you need to consider how well the property is maintained, what amenities are offered, the square footage of the property, and where it’s located. You’ll want to look into what local competitors with similar properties are renting them out for. That can help you set an appropriate rate.
If you’re hoping to increase your rent down the road, then you need to consider how to do it strategically. Maybe this is something you have set in place every year. If so, it should be discussed in the lease. Maybe you want to do a few renovations to improve the value of your property which would then allow you to increase the rent as well.
Renovate and remodel
Renovating and remodeling is a great way to improve the value of your commercial property. However, you want to be careful not to go over budget. Consider what updates will increase the value and allow you to up the rent without it costing you more than you’d earn back over time.
There are some affordable ways to give your property a quick update like new flooring and a fresh coat of paint. Outdoor landscaping can also greatly improve the exterior appearance of your property which will keep tenants happy and make your property look good. You can commit to larger renovations as well like redoing the lobby, investing in a new roof, or even giving the exterior of the building a facelift.
Add amenities
Adding amenities is another way that you can increase rent. Offering great amenities can also help increase occupancy rates. Have you considered adding free wifi to your commercial property? What about a gym? These are just two potential amenities you could consider. Think about what your current or future tenants may appreciate having on the property.
Maintain your property
Keeping your building in great condition is another thing that will inevitably increase its value. That means maintaining a clean interior and exterior. It also means making sure the building is up to code and that everything is in good working condition. Maintaining your building benefits you and your tenants. You can hire a cleaning crew to look after the property and do monthly maintenance checks to make sure nothing needs fixing. If you’re offering any additional maintenance services that your tenants would normally be responsible for, you can offer them as an optional service with an additional charge (that’s covered in the lease).
Keep tenants happy
Added amenities, renovations, and regular maintenance can help keep tenants satisfied with your property. Beyond that, consider other ways you can continue to keep tenants happy. Maintain an open line of communication with them. When you talk with them, always treat them in a friendly, respectful, and professional manner. Also, make sure they have a way to get a hold of someone if they need anything. And, ensure quick responses to their questions and concerns.
Stay with the times
Another way to increase the value of your property is to simply keep up with the times. Consider smart solutions like smart locks and security cameras to keep your property and tenants safe. Think about making your property more eco-friendly with the right light bulbs and other energy-efficient upgrades. If you want to take this a step further, look into getting LEED-certified to ensure your property is following green standards.
Overall, there are plenty of ways to add value and maintain that value. You just need to invest a little time and money into your property to maximize your earnings. At PMI, we can help. We work hard to ensure that you find great tenants to occupy your properties and then we maintain those relationships. We also pride ourselves on providing excellent communication and make it part of our brand promise to our owners. You can trust us to offer the best services to help you succeed. Please visit our website today to learn more: https://www.propertymanagementinc.com/
