Real estate is one of the safest investments to consider for growing your portfolio. That being said, the longer you own this property, the more work it will need. These properties can deteriorate significantly over the course of a decade, depending on what is happening in the commercial property.
At some point, there will come a time when you may consider selling your property. That being said, you will want to ensure you are getting the most for your money. You would have likely put a lot of money into this building to buy it, never mind the amount for any breakdowns and repairs. So let’s take a look at how you can increase the value of your commercial property, whether that is for you to sell or to increase the rent.
Optimise Your Lease Agreements
The first thing you need to consider is the lease agreement, as this will not only benefit you as the landlord but also the tenant. The way to do this is to consider long-term leases, and as part of this, you will ensure that there are rent reviews. The reason why you do this is because of inflation and the market value of your property, which means you will need to adjust the rent over time.
The ideal amount of rent review would be a year, which means that you ensure you are covering any significant price hikes and inflation. Plus, this isn’t too often to the point where the tenant would be unhappy with how regular they are.
Maintenance and Upgrades
Another great way to ensure you maximise the value of your property. Regular maintenance with anything that gets used a lot is essential. Furthermore, the reason why you should stay on top of your maintenance is so you avoid any unnecessary breakdowns. Regular maintenance will help save you money, especially if something does eventually break down.
A good example would be a lift company. Regular lift maintenance ensures that the lift, which is in use every day, doesn’t break down. Lift breakdowns can be expensive, as well as causing accessibility issues in the building, especially if you don’t have a backup lift.
Regular maintenance isn’t just about avoiding breakdowns; it is also about health and safety, so make sure you have regular maintenance in place to keep the tenants safe.
In terms of upgrades, there are a number of things to consider for this, as this can help increase the property value significantly. Upgrading to energy-efficient systems is a great way to save money on energy bills for the tenant and is something they heavily consider when searching for commercial property.
Aesthetic upgrades are something else that can improve the value. The best part about this is that it doesn’t need to break the bank. All it needs is a quick update with painting or even changing the carpet/floorboards. On top of this, you can consider structural improvements for your property. Health and safety are essential when you are renting out your property, so you must ensure you avoid any potential legal issues or expensive repairs.
Ensure It Is Appealing
The outside is just as important as the indoors; therefore, you need to keep the exterior looking good. In this case, it is the little things that matter, such as pathways being well-lit and there being clear signage on and around the building. Adding some greenery is also another great way to make the area look much better than it is. Even a fountain can make it look great.
Parking is something else that you need to ensure that you are taking care of, especially if you are trying to increase the value of your property. Furthermore, some commercial properties are designed for the public and therefore, will need somewhere to park their vehicle. Plus, it needs to be a safe area for them to leave their vehicle, so ensure that there is CCTV and barriers on site.
Design A Flexible Area
This is one of the most important things to do when you are looking for new tenants or, you are selling your property. Creating an environment that can be used for various types of businesses is a great way to ensure that you attract as many people as possible. It must be versatile.
To create a well-designed area, you need to leave it open-plan. This allows the next tenants to be able to customise the property to how they want with partition walls. Room dividers and modular furniture can also be in the building. Not to mention offering shared amenities such as a communal kitchen, breakout area and even meeting rooms.
Maximise The Use of Technology
The world is becoming very reliant on technology, and it is a good, unique selling point to tenants for your property. Technology is definitely worth the investment, especially if you wish to maximise your profits. The type of technology you need to have is automated and censored lights, temperature control, and security with CCTV and fob locks. All of this can add a lot of value to your property, although it is an expensive investment in some cases.
Other areas that are worth spending money on include a good and reliable internet connection, especially fibre optic, if possible. Another consideration would be HVAC systems that ensure you get the most out of your energy systems. Finally, access controls, just for that extra layer of security.
Sustainability
Last but not least is improving the sustainability of the building. This is something that every tenant looks out for, as it can help save money on their energy bills. The things to consider for this would include solar panels, LED lights, and efficient insulation. It’s these small changes that can make a lot of difference for your tenants and will certainly entice more people to rent your building.
To Conclude
Maximising your profits with your commercial property is a lot easier than you think. At the end of the day, it is the small changes that can increase the value significantly. Remember, there are many ways that you can do to ensure you are saving money, such as regular maintenance on the property. Even the well-being should be prioritised, such as good airflow and mould removal.