“Keeping The Value Of A Commercial Building For Lease” written by Mike Marko
Do you know why it’s important to keep the value of a commercial building for lease?
Commercial properties can provide a steady source of income. However, that’s only if you can get good, paying tenants for them.
To do that, you need to keep them in good condition.
Investing in your property’s maintenance can keep it in good enough condition to attract commercial tenants. Most business owners won’t bother taking on a lease for a building that’s falling about their ears, after all.
Now you’re probably getting a little worried about the possible costs of this. You’re thinking that maintaining the property’s value will require a huge amount of money.
But you don’t really need to spend too much if you know how to keep the value of your property.
In this blog post, I’ll talk about efficient ways to keep the value of a commercial building for lease.
Different Ways to Maintain a Commercial Building for Lease
To keep your commercial building for lease valuable, you have to make sure that it’s getting regular maintenance.
That’s because building degradation tends to compound as you leave it unaddressed.
If you fix a leaky roof the moment it appears, you’ll likely spend less on repairs than you would if you waited for more leaks to show up first.
That’s because you’ll have to address other problems too in the latter situation. These are often problems that were caused by the leaks you didn’t fix quickly enough.
Examples of these would be mildew, mold, ceiling stains, and wallpaper warping from moisture. There’s also the possibility of flooring repairs for waterlogged wood or carpeting.
So what could have been a relatively simple repair job will balloon into something else just because you didn’t fix it earlier.
It can even get bad enough to demand serious renovation and repair work… in which case your commercial building for lease will be costing you more than it makes, at least until repairs are finished.
That’s a shame when you consider that commercial property is one of the best investments a person can make right now.
Managing it properly can even generate yearly profits that are equivalent to 6-12% of its purchase price.
Property managers can even increase the property’s revenue by keeping its value. In other words, they just need to maintain the commercial building for lease.
Maintaining the property is the best way to keep its value. Doing so even while it’s still vacant keeps it an attractive option for business owners seeking a commercial building for lease.
Once someone does take on the lease for the building, chances are, most maintenance tasks will become their responsibility. But until then, you’ll have to see to those yourself to lure in tenants.
With that said, consider doing the following to make sure your commercial building for lease is in fine enough condition to draw in tenants.
Have a Janitorial Service
When people seek a commercial building for lease, cleanliness is often one of their requirements.
After all, the cleaner a building is when they move their business into it, the less work they’ll have to do getting it ready for their occupancy.
And remember, preparing buildings for a business can cost money. No business owner wants that expense to be unnaturally high.
So if you want a chance of attracting good, paying tenants, make sure your commercial building for lease is kept clean.
Keeping it clean also spares you problems that can result from sustained neglect of the building’s hygiene… like pest infestations or fungal issues.
With that said, consider having a janitorial service for the property even when it’s still vacant. This can assure you that the commercial building for lease is always clean and ready for a potential tenant’s viewing.
However, make sure you set clear expectations for janitorial services. Be specific on what needs to be done daily, weekly, monthly, and yearly. This can help you get the best from your janitorial service for your commercial building for lease.
Set a Regular Maintenance Schedule
The commercial building’s systems are among the first things that most tenants check when they look for a property.
That’s why it’ll be bad for your commercial building for lease if its utilities don’t even work.
Always conduct maintenance on your vacant property. Just because it’s unused doesn’t mean you can let it go to seed. You have to make sure it’s always ready for use.
Check all relevant utilities when doing scheduled inspection and maintenance on your commercial building for lease.
Look at the plumbing, electrical, and heating systems, for example. Look too at the ventilation and air condition systems, if applicable.
When a tenant finally shows up asking about your commercial building for lease, you’ll be able to show him a property with fully-functioning systems.
That makes it easier to charge the leasing fee you want for a property. Tenants are usually more reluctant to pay higher leasing fees if they think they have more expenses in store just to get a building ready for their business.
Perform Check Ups with an Engineer
Sounds like too much trouble? Not really. The thing about most commercial building for lease contracts is that they place the burden of structural repairs on the landlord’s shoulders.
So if a structural repair is necessitated as a result of issues with the building that predate the tenant’s occupancy, you’ll still have to pay for them.
Keep that in mind because it’s your duty to ensure that your commercial building for lease is structurally sound and safe for use.
If a problem is discovered with the building that could potentially endanger occupants’ lives, there’s a chance you won’t just lose your tenant — you may also end up being sued for endangerment.
So to keep your commercial building for lease viable as an option for businesses looking to rent premises, make sure you have an expert vouching for its integrity.
Ask an engineer to look at the building while it’s still vacant. That way he can tell you if there are problems you should fix before you even lease the place.
An engineer can also tell you if the building codes have been followed in your commercial building for lease. Remember that it’s your obligation as a landlord to ensure those regulations have been observed.
If any part of the local building codes have also changed, you may want to consult an expert about that. See if anything needs to be done with your property to keep it compliant.
Other Ways to Keep the Property’s Value
Property managers didn’t have to spend large sums of money to keep the value of the property. It’s because paying attention to little things in the property will also pay off in the long run.
Here are other ways to keep the property’s value.
Upgrade a Property to Keep up with Trends/Demand
You can also add improvements to the property to increase its value and appeal to more potential tenants. Adding technology or improvements can be a reason to charge higher rent.
For example, you can add occupancy sensors for the building’s lighting systems. You can charge higher rent for a building with these because they can help keep down the power cost involved in lighting.
You may want to do a survey of your target tenants to find out what their companies are looking for in a commercial building for lease nowadays. It can help you figure out what upgrades to make in order to attract them to your place.
Invest in Security Equipment
Having a well-secured property will help you find good commercial tenants. That’s why property managers invest in security equipment.
If you’re planning to invest in security equipment, consider installing security cameras. Most tenants will do this anyway once they take over a commercial building for lease.
Having it preinstalled can help you charge a little more for rent, as you’re essentially sparing the tenant the cost of it.
Final Thoughts on Keeping the Value of a Commercial Building for Lease
In this blog post, we talked about how to maintain a commercial building for lease. Property managers need to keep the value of the commercial building to attract possible tenants.
To keep a property from depreciating, property managers have to hire janitorial services to keep it clean even while it’s vacant. They also have to conduct regular maintenance to check the building’s systems and condition.
It may even be possible to add to the property’s value over time. This is if the landlord or property manager installs upgrades like system-improvement technology or security systems. These can make the building even more attractive to commercial renters.
If you have more questions about a commercial building for lease, leave them in the comments below.
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