When you are looking for ways to boost your commercial property value and get an excellent return on your investment, you need to make the right decisions in the first place. To keep it safe, do a little personal research online about different topics related to commercial property value increment. You can also read about new market trends and strategies in achieving higher revenue from commercial buildings and lands.
Even if commercial properties are widely seen as a long-term investment, you can never gain that extra when you don’t take the necessary steps to make them sustainable income generating assets. Find out the 10 most strategic ways to increase your commercial property’s value.
Make Improvements to the Property
– Building improvements, especially those that beautify the building and the entire property can add value. These include interior or exterior improvements on shopping malls, office buildings, residential apartments, and even industrial plants. By doing so, you can increase the rent you currently charge.
Add Amenities and Boost Returns on Investment
– Doing a landscape innovation and fixing up the general interior may not be enough to increase your property’s value. You might as well add amenities that will benefit your tenants more. Some of which are a fitness centre, high-end conference rooms, bigger trade halls, automated coffee bar, and other concierge services. These amenities can also be complemented with income-producing roof space for large gathering, automated laundry machines, and fully-furnished convention halls.
– Once your tenant’s lease expires, you can review the market trend or search for average rent rates online and adjust your lease for the new contract or new tenant. You can also increase your rent for an existing tenant who has occupied the space for several years already.
Have Tenants Pay for their Own Utility Costs
– If you are paying for water usage, electricity, and gas usage in the building or apartments, consider installing sub-metering devices to accurately determine each of your tenant’s utility consumption, and start revising your collection process. Add to their bills their utility usage. In this way, you can avoid paying an excess.
Negotiate and Make Adjustments on Existing Lease Contracts
– This greatly applies to when you are borrowing money on the property. Instead of setting a one-year-only lease, make it 5-year or 10-year to maximise your commercial property’s value. Improve your lease contracts with your existing tenants if possible.
Adjust to Decrease Operating Expenses
– It’s time to review your expenses for the past weeks, months, and years, and make it your goal to gradually minimise them. Compare expenses with your other properties. Talk to reliable property experts or managers in your area about their expenses, and try to compare.
Make Changes in the Management
– Sometimes, it is helpful to make changes amongst the people you have assigned in the managerial positions. Either you reassign people from one property to the other or you can hire new agents and managers. They can be useful enough to give you new insights and advice on how to run your business successfully.
Make Amends in Property Taxes
– Once you get an appraisal for your commercial building or lot, find out how you can make an appeal for the amendment of your property taxes. You can hire an attorney who is expert in tax appeals to help you with this issue.
Change the Use of the Property
– This requires a significant amount of money for renovations (if necessary). However, if properly planned, this can also be a promising way to increase the value of your commercial property. One example is renovating a hotel into apartments. Try to read for random reviews on commercial properties and find out how commercial use can give you more in property returns.
Divide Your Property
– One smart way to double your property returns and increase your property’s value is to divide your property into different purposes. If you own a land, you can simply divide it into small parcels and do certain makeovers.
There you have ten ways to boost the value of your commercial property. Pick whichever method you prefer, if not all, and see how they affect your returns.