It can be difficult finding the right commercial property if you do not know where to search. Keep reading for a handful of real estate tips and tricks.
Pest control is an important issue to look at when you rent or lease. Especially when you rent in an area known to be infested by bugs or rodents, ask your rental agent about pest control policies.
When deciding between two viable commercial properties, it is best to think on a larger scale. Getting the proper financing is going to the same hassle for a retail building with ten outlets as it would be for a retail property with twenty or even thirty units. By choosing a larger piece of commercial property, you will be getting a better rate per unit, giving you the best potential for success.
When choosing a broker, ask about their experience specifically in the commercial real estate market. Make sure you know that they actually specialize within the area you plan on selling and buying. Make sure your agreement to work with that broker is exclusive.
Ask for the credentials of any professional you’re planning to hire as an inspector, and ensure they are experienced in commercial real estate. A lot of people have no accreditation, especially in pest control services. Staying on top of this will help you avoid issues after the deal is completed.
If you are renting out your property, be sure that they are always occupied. If you have an unoccupied property, you will be the person paying for the maintenance and upkeep. If you have multiple unoccupied properties, try to determine the reasons why, and rectify the problems that are keeping tenants from renting the spaces.
Always make sure that utilities can be accessed from the commercial property you are looking into. You’ll need to have quick access to water, electricity, gas and the sewer.
Both local and non-local advertising of your commercial real estate property will be beneficial to you. Too many people assume that only the locals are interested in buying property in the area. There are many investors who are interested in financing properties which are outside their area as long as they are a great deal.
You may need to make some changes to the commercial space you just rented before moving in. In some cases, all that is required are simple changes like moving the furniture around or giving the walls a new coat of paint. In many cases, walls must be moved and floorplans rearranged. Negotiate these changes ahead of time with the landlord. He may be willing to share these costs needed in order for you to move in.
You should always know who takes care of emergency repairs. Speak with your landlord, and ask who is in charge of emergency repair work at your home or office. Learn the phone numbers and response times. Work with your landlord to create a contingency plan in the event that an unforeseen disaster occurs; this will allow you to avoid customer service or public relations nightmares.
When searching for a real estate agent, keep their disclosures in mind so you know who they are working for. Remember that dual agency is also an option. In this situation, the agent will represent the buyer and seller. In other words, the agency represents the landlord and the tenant simultaneously. If this is the case, and the agent is a dual agent, this should be known to both parties and agreed to by both parties.
A borrower must be the one who orders an appraisal in a commercial real estate loan. There is a good chance that the bank may not validate it otherwise. Do the right thing and order it yourself.
If you plan on investing in commercial real estate, you should consider the tax benefits you will receive. Investors can get interest deductions and depreciation benefits too. However, sometimes an investor can receive taxed income that is not taken as cash, otherwise known as “phantom income”. Find out if you will be getting this kind of income before you invest.
The advice outlined above lays out a number of useful strategies applicable to both buying and selling commercial real estate. With what you learned from this article, you can use it as a base and start to stay informed as you expand your knowledge on the real estate market.