As a commercial real estate investor, you must be familiar with the importance of innovation and its impact on the ROI (return on investment). If not, you have come to the right place. Your property’s location, the way it looks, and how well it is maintained are a few factors that play an integral role in setting the value of your real estate property.
In this article, we will be discussing four innovation tips to boost the ROI of your commercial real estate property. So, without any more delay, let’s dive in.
1. Research the Property Before Investing
Whether you are planning to invest in commercial real estate or multi-family residential property, researching can increase your ROI by 10%. Use online tools to learn about the value of the property in that specific area and consult with a financial advisor or realtor to be aware of the market scenario.
Pro-Tip: Investors can use online tools to determine the cap rate, rental income, and ROI of a property.
2. Renovate Your Property
Before renting your multi-family residential property, you must ensure all the utilities function well, and the project has all the essential amenities. Thus, investors should inspect the property for any damages and get them repaired as soon as possible. For example, apply a new coat of paint, change the carpet, and replace the furniture and appliances. This will get you the attention of potential investors, allowing you to sell your property at a higher price.
3. Find Responsible Tenants
Even though it may seem like an easy way out until the property sells, abandoning it will only worsen things. While you look for investors, find responsible tenants, as they can help maintain your property until it sells. Make sure to screen renters and conduct a background check before giving them the keys to your building's vacant space.
4. Maintain Your Property
Although repairing and renovating the exterior and interior of your commercial property is essential, hiring a property management company will not only save you thousands in the long run but also keep your real estate investment up-to-date. Remember that advertising a well-maintained property will easily grab the attention of potential investors, giving you a profitable ROI.
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If you are looking for a real estate company to help you with acquisition, development, and property management, Milbrook Properties Ltd has you covered. With over 100 years of experience in maintaining and managing 3.4 million square feet of commercial real estate space and 1500 residential properties, our professionals are committed to providing you with the best service. Contact us to increase the value of your multi-family residential or retail space today!