Owning real estate in any sector is a great way to grow your wealth and build for the future. And while many first-time investors start with residential real estate for its familiarity, owning commercial real estate can often be just as or more profitable. But there are also unique issues and situations that can take place with commercial property that you have to be prepared for. Knowing what to do when things don’t go your way is what will make or break your success in real estate. Keep your eyes out for these three issues that can cause problems for a commercial property.
The first major issue that can cause problems for a commercial property is plumbing issues. As a landlord, you are required to provide certain things to your tenants. Running water and hot water are just two of those many requirements. If your building suffers from plumbing issues, you will find it difficult to legally collect rent from your tenants. You should always make sure that there are no pre existing issues with the plumbing of any commercial building you buy and fix any issues you are aware of as soon as they come up to protect your investment.
Roof and Window Leaks
The next issue that can cause problems for a commercial property is roof and window leaks. Water damage is a serious issue and can even lead to significant structural damage that you will be responsible for as the landlord. Metal roofing is one of the best options for your commercial property. Not only are metal roofs super durable, but they also have a long life, offering as much as fifty years of protection to your home. Also be sure to seal your windows tightly to avoid air leak and water leakage.
The final issue that can cause problems for a commercial location is a bad location. When you own commercial property, you are selling the street traffic to businesses who lease your property more than anything else. If your property is an undesirable area for commercial tenants, then you are out of luck. Do not choose a bad location just because you can afford it, there is always a reason behind the price.
Owning commercial real estate can be incredibly lucrative. But only if you know how to do it properly. Keep on the lookout for these three issues that can cause problems for your commercial property.
Check out this article on commercial property maintenance to get done in the spring!