Get the most out of your commercial assets.
The Commercial Property Series
A successful commercial property investment is like running a business and requires a combination of thorough research, financial management, and the ability to adapt to changing market dynamics. Here are some key factors to consider to get the most out of your commercial assets.
Structure and Financing:
Secure favourable financing terms to minimize interest costs and increase cash flow.
Work with your accountant to set up the relevant ownership structure to leverage tax benefits and incentives.
Secure favourable financing terms to minimize interest costs and increase cash flow.
Work with your accountant to set up the relevant ownership structure to leverage tax benefits and incentives.
Thorough Due Diligence:
Conduct comprehensive research on the property's location, area infrastructure, market trends, and potential for growth.
Don’t chase yield alone. Make sure you’re purchasing in a great location that considers capital growth.
Assess the property's condition, identifying any necessary repairs or upgrades.
Tenant Selection and Retention:
Screen tenants rigorously to ensure they are reliable and well-suited for the property.
Is their business part of a growth industry?
Are they an established successful business?
Have they been paying rent and outgoings consistently?
A key point for the current moment is to check any COVID rental plans that may have been put in place.
Focus on effective communication with tenants to reduce turnover and vacancy periods.
Optimized Property Management:
Choose an experienced property management team to efficiently handle operations and tenant relationships.
Implement cost-effective maintenance and management strategies to minimize expenses.
Value-Add Opportunities:
Identify opportunities to enhance the property's value through renovations, improvements, or repositioning.
Implement changes that align with market demands and tenant preferences.