Getting ready to buy your first commercial investment property is really exciting. You’ve been saving to get to this point and finally you’re here. However, as a first-time investor, this excitement could lead you to make rash decisions, which would be detrimental to your cash flow in the long run.
To avoid making impulsive decisions, many top investors recommend that you always get a third party to view your property before buying and that you also view the property in the same way an average tenant would see it. If you were a tenant, would you want to lease that space?
Investors simply cannot afford to be complacent concerning the situation of their properties because if nobody is prepared to shell out rent for the space, they're going to find themselves in trouble. In order to reach 100% occupancy in your property, it is important to take into consideration what tenants want from a property.
The best way to keep a tenant in your property and paying rent is to ascertain that they have nothing to repine about. According to property veteran Margaret Lomas, there are a number of simple ways to keep current tenants happy.
“What commonly sends a tenant looking elsewhere is when there are maintenance or desperate renovations that are left unattended, and when they sense they may just pay the same elsewhere for a space in better condition.”
To get optimum rent and attract the perfect tenants you should know just what tenants look for when they are trying to find a property.
Location is, quite famously, one of the top things to think about as it pertains to making a purchase. Research your facts about different local market segments, to check out the ones with strong earnings potential and strong demand. It is also important to consider not only the market in which your property is located, but its position with regards to local amenities and retail competition. This is often best looked at in relation to the type or kind of tenant you want to attract.
It may seem perverse but usually tenants tend to be more concerned with logistics than the actual address. The key commercial real estate components include ingress and egress access points, proximity to stop lights or intersections, and proximity to major roads to name a few. The most important factor generally tends to be the location and how easily accessible this location is for the tenants customers.
3. exterior condition
Tenants love whatever looks or seems new. As a commercial real estate property owner, you should take pride in things such as parking lot condition, signage, roof conditions, and landscaping. If all of these are in great condition, you are more likely to attract local and national brand-name tenants.
4. Tenant improvement
Every tenant understands that the fact that another business leased the space before them, nevertheless, they don't want to see or believe that. Turnover is enviable in retail commercial real estate. Being able to manage this process in an organized fashion is critical to your bottom line. Using new tools such as Tenant Tracker (TenantTracker.net) allow you to streamline this important process and move tenants in happier, and sooner.