The Secrets to Success – 4 Things You Need To Know About Managing Your First Commercial Property

It doesn’t matter whether you’re just starting out in the property game or are a decades-long veteran in the private sphere, commercial real estate is a whole different ballgame. Where before you were dealing with what was most likely a single-family occupancy, you’ve now got a whole business, if not multiple, living under your roof.

While commercial property certainly offers great returns and is regarded by many as being a safer investment than domestic dwellings, you’re still not guaranteed a growing bank balance and successful ownership, so it pays to know what you’re getting yourself into. Here are four things to keep in mind about managing a commercial property:

Never Go It Alone.

The first thing you will want to do before you even decide what property you want to purchase is find yourself a good commercial property expert. They’ll be able to give you the inside scoop on pretty much every aspect of investing in the field and bringing in a professional at the start of the process can save you a lot of potential hassles down the road.

Don’t Rush It.

ICC Property Management reminds us that good thing come to those who wait so if you can’t find your perfect property, hold off until the right one comes up. Unless you plan on becoming a real estate tycoon, the commercial property you choose is likely to be either your only or at max, one of a few carefully collated additions to your portfolio, as such, it should be the investment version of your dream home. Don’t settle for less, your future tenants sure won’t.

Have A Back-up Plan.

Yes, commercial tenants are generally considered less of a risk to a property than their private counterparts but that doesn’t mean that unexpected expenses won’t pop up from time to time. Make sure you’ve got contingency plans in place and can pay for any repairs that may be required in a timely manner or you’ll have some pretty unhappy tenants which leads to a stressful situation rather than the extra padding that the property was intended to be.

Get Your Lease Right The First Time.

Leasing a commercial property can be a bit more complicated than contracting out a private residence. Make sure the terms of your lease clearly outline who pays for what. For example, charges for rates and utilities, general maintenance, and renovations should all be clearly labeled as either your responsibility or the tenant’s responsibility. Work with your property manager to get this right as it’s a complicated process and you don’t want to get stuck with excess charges just because the wording wasn’t right in your lease agreement.

Like any business venture, there’s a lot more to successfully managing a commercial property than can be summed up in a single article. These top four tips, however, will get you pointed in the right direction and ensure that all other aspects flow far more smoothly than they would have otherwise.

In the real estate game, there’s a lot less room for error than in many entrepreneurial ventures due to the sheer amount of capital that needs to be put up, but you shouldn’t let this dissuade you. Take your time, make sure there are no holes in your plan, and do things right the first time and you’ll be well on the way to success.