Owning Commercial Property... It's Fun!

4/19/2012

4 Comments

 
In the real estate market today, owning commercial property can still be very profitable even though prices of properties have dropped. If you are the owner of a piece of commercial property, you'll still be able to make a decent income, but it will take some work. Owning commercial property comes with a lot of work and time invested.

Facility Maintenance

One of the main responsibilities that you have as a commercial property owner is maintaining the facility. When you have tenants in a commercial property, you must make sure that the property is kept up. This may mean making repairs, updating certain parts of the building, painting, plumbing and a host of other activities. Usually a company like Premiere Works needs to be hired to handle these commercial repairs and building updates. If you can handle this work yourself, it could save you quite a bit of money, but at the same time, it will require you to invest a lot of your own time. Also see http://www.premiereworks.com/services/construction/ for types of commercial construction services needed to maintain a commercial property.

Lease Terms

When you own a piece of commercial property, you also have to decide on a specific type of lease for your tenants. In the commercial property world, using a triple net lease is common. With a triple net lease, the tenant has to pay rent, property taxes, insurance premiums and maintenance costs. With this type of arrangement, you really don't have to do anything for the property. You just sit back and collect your rent every month from the tenant.

You could also choose to avoid this type of lease and handle everything by yourself. With a triple net lease, you will not be able to charge as much for rent since the tenant has taken care of most of the work for you. You could also use a double net lease or a single net lease in which the tenant takes care of one or two of these areas for you.

Considerations

When it comes to owning commercial real estate, you have to take into consideration the location of the property and who could rent it out. Only buy properties that are in good locations and that have many different types of potential tenants. Otherwise, you could end up with a property that you may not be able to use in the future.

Resources:

http://www.lni.wa.gov/TradesLicensing/Contractors/HowReg/

Premiere Works
5125 MacArthur Boulevard, NW Suite 13 Washington DC 20016
(202) 618-3099
4 Comments

Three Things to Do Before You Sell Your Home

3/28/2011

7 Comments

 
When considering selling your home, there are many aspects to consider. At what price do you want to sell the house? By when do you want to sell the home? How are you going to sell the home, with a realtor or by yourself? What should you do to get the home ready to sell?

The underlying objective is to make the home as appealing as possible for potential buyers. In order to showcase your home, here are a few things to consider.

1. Reduce the clutter inside your home.
A clean home that does not appear too crowded with furniture or personal items will appeal to potential buyers. If it looks like you don't have enough space for your personal items, then how would they? When getting ready to show your home, make sure that you do some last minute cleaning. Dirty dishes in the sink or clothes thrown on the floor in the bedroom do not leave much of an impression.

If you have already moved out, you may want to "stage" the home and hire a company to place a few pieces of furniture in each room. It helps people to imagine living there and helps them to conceptualize the layout of each room. A blank room does not leave much of an impression either.

2. Maintain the exterior of the home.
A well cared for lawn and landscaping adds plenty of curb appeal. Little things like a fresh layer of mulch in your landscaping beds will go a long way! A freshly cut lawn looks much better than an overgrown one that shows no one cares.

The outside of the home is the first thing buyers will see. If they don't like the outside, they may not even go inside! If the exterior structure of the home appears worn and old, consider the idea of vinyl siding. Vinyl siding installation is fast and quick and will give your house a whole new, fresh look.

3. Take photos of the house, inside and out.
Create a brochure, or have your real estate agent create a brochure, for potential buyers to take with them. Colorful, clear photos in the brochure will help the buyer remember your home at a later date.

A little effort on your part before you sell the home can go a long way towards getting you the best possible price.
7 Comments