Working with commercial real estate is a difficult chore, and this collection of tips will give you ideas on how to get started. This article is exactly the kind of collection of commercial real estate tips that can help someone who is willing to learn. Following the advice within can quickly turn a novice into a professional.
Before purchasing any property, you should investigate its area to determine the average income level, unemployment rate and whether or not that area is growing. In addition, you want to keep in mind what else is close to the property. Any place that supplies a large number of jobs to the economy can raise the resale value of any property and make it much faster to sell if you decided to go that route. Big employers might consist of hospitals, factories, or universities.
Take photographs of the property. Be sure that you have any and all defects present on the pictures you take (things like holes, discoloration, or spots).
Pest Control
If you are renting or leasing, be sure to know about pest control arrangements. It is a good idea to consult your rental agent for information on pest control policies, especially if the area your property is located in is known for a high population of insects and rodents.
Whether you want to get into real estate or you’ve been into it for a while, visit some websites that will help you find out how to invest in commercial real estate. Learning is an ongoing process, and you can never know enough.
When having your real estate inspected (as you should), always ask for the qualifications of the inspectors. Pay particular attention to the credentials of any pest-control experts because many of them are not licensed. Ultimately, this can help you to bypass larger, more expensive problems.
Try to decrease potential events of defaults before negotiating a lease. This lowers the chance that the person renting will fail to uphold their end of the lease. You don’t need this to happen.
Take tours of any properties that you’re considering. When looking at a property that you are thinking of purchasing, it’s a good idea to have a licensed contractor accompany you. Make preliminary proposals to break the ice and open negotiations. Give a bit of thought to the counteroffers before deciding to accept the offer, make a counteroffer yourself or walk away.
Put a high priority on emergency maintenance needs. You should ask your landlord who is in charge of handling emergency repairs. Know their phone numbers and also what their likely response time is going to be. Take advantage of this information to devise a contingency plan in order to prevent and respond to customer complaints resulting from maintenance issues.
Commercial real estate has many brokers to offer. Some agents represent tenants only, while brokers work alongside tenants and landlords alike. Consider hiring a tenant-only broker as he’ll have the most experience in dealing with situations such as yours.
Dual Agency
Check any disclosures a potential real estate agent gives you carefully. Never neglect the fact that you may be dealing with a “dual agency.” Dual agency means the real estate company is representing both the seller and the buyer in a property transaction. In other words, the agent is representing both you and your landlord in the same transaction. If dual agency is the case, it should be out in the open and both the landlord and the tenant should be in agreement with the arrangement.
Hopefully the information contained in this article will help you to build a foundation of knowledge off which you can grow to profitable heights. This collection was carefully constructed to help you begin to hone your buying or selling skills when it comes to commercial real estate.