6 Effective Ways to Maintain the Value of Your Commercial Property

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Commercial properties have always been a lucrative investment. Stepping into the real estate market, however, doesn’t grant instant success. In order for investments to take off and ensure stable returns, landlords and property managers have to put a lot of effort into preserving the value of commercial properties, which is, essentially, the fuel that keeps the whole industry going.

Let’s take a look then at some of the best, most profitable and most time-effective ways of keeping your property competitive and sought after without dropping its market price.

Be careful when choosing the tenants

Good tenants do not only take much better care of the space they are renting, thus reducing the need for maintenance in the first place, but they are also able to raise the property’s profile by their sheer presence. This is especially true with businesses whose operations can increase the local foot traffic, lure in other businesses, and eventually raise the profile of the entire area. In terms of regular occupants, responsible tenants are the thing that makes a neighborhood safe and pleasant.

Do your best to keep the valuable tenants

Of course, all of the benefits we covered above will become tangible only if you are able to retain prospective tenants over extended periods of time. That is why, once you feel you have found someone you can rely on in the future, go out of your way to ensure the rent will be renewed. Some of the moves you can make are prompt reactions to complaints, open and frequent communication, longer lease agreements and even a couple of incentives in the form of various discounts.

Pay attention to maintenance

No matter how responsible your tenants might be, you will need to perform scheduled and emergency maintenance interventions. If you want to preserve the value of your property and eventually attract higher-paying occupants, your reactions will need to be timely, clean and efficient. For instance, if your tenants are experiencing plumbing issues, you can easily solve this problem by hiring professionals for blocked drains. The pipes will be repaired from the inside, and you won’t cause the occupants further trouble by tearing down the walls.

Have a planned upgrade schedule

Although proper maintenance is the key to keeping your property in good shape, it’s far from being capable of single-handedly preserving its market value. Namely, the competition will easily break this fragile status quo by regularly upgrading their investment and leave you lagging behind. That is why you should look at the property income more as a working capital you will use to schedule future upgrades, if necessary, even a few years in advance.

Some of the upgrades that should drastically affect the value of your property are:

  • Double-glazed windows
  • Insulated doors
  • Energy-efficient appliances
  • Energy-efficient lighting
  • Energy-efficient HVAC systems
  • Kitchen upgrades
  • Bathroom upgrades
  • Smart home upgrades

Make your property safer

Whether we are talking about individuals or legal entities, your tenants will want to feel safe in their future residence. Because of this, you can easily raise the profile of your property and help it withstand possible market fluctuations by installing even the simplest security tools. Some of the common upgrades that should, by all means, register on your radar are fire alarms, motion-triggered alarms, surveillance systems and motion-triggered yard lighting, although you shouldn’t rule out more ambitious undertakings like panic rooms either. 

Even something as simple as the installation of steel doors can produce a quite substantial 90.7% ROI.

Keep the lot clean

Finally, all of the measures we covered above will produce only limited results if your property leaves a poor visual impression. One of the easiest ways to remedy this issue is to keep the lot clean and well-maintained. If we’re talking about business premises, you should schedule regular garbage removal and window cleaning. Family homes will drastically benefit from regular pruning, leaf removal, lawn mowing and other landscaping services.

Although these duties could be and should be shared with tenants, leaving an entire burden on their shoulders could prove to be too much and eventually damage the reputation of your investment.

We hope these few guidelines will help you preserve your commercial property’s value in the years to come. The real estate industry is very safe but not completely carefree – don’t allow yourself to become a victim of future price fluctuations and set the pace for the competition instead.

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