If you are a regular investor, you may relate how investing in a commercial property can be rewarding to a great extent. Commercial properties are buildings or land intended to generate profit. It includes large number of building options such as offices, car parks, warehouses or retail shops. There is a range of commercial space for sale in Jaipur, starting from about 10,714 rupees per square feet. If you have little experience in investing on such property, it is important you read about these five common mistakes that people make while buying commercial property, so that you be cautious and well aware of the tricks of investment:
Assuming that tenants won’t need a particular facility: Tenants always desire for some facilities to be available in your property such as onsite car parking, access to public transport, etc. You must understand how small things like a good location can affect your income through the business. Also, if you have set the prices too high to rent, you will face difficulty in finding tenants. While choosing a commercial property, you must confirm that the tenant’s needs are fulfilled.
Buying a place with poor footfall: Although this is a common knowledge, yet some investors make mistakes in choosing a property situated in an appropriate location. By appropriate location, I mean areas which are exposed to the people and are convenient to access. Tenants will always look for these points in your property, especially if it involves marketing to the general people. Give utmost importance to location while buying a commercial property.
Not surveying the property when left unoccupied: If the property you own has been left unoccupied for some time, don’t ignore and let it accumulate dust. You need to survey each item of the property by making a comprehensive checklist. You will have to check if the water is flowing flawlessly or if the air conditioner is working properly or maybe grass in the lawn has grown too much. Analyse your house properly and don’t ignore any flaws you find. You must keep the property in a good condition before it is occupied again.
Wrong decisions: You need to choose a property which satisfies your financial goals as well as the capacity to tackle risks. Income, capital growth and strategic purchase are the three important things while buying a property. You should not run down your business by flowing away with emotions. Always keep in mind the location and tenant’s needs before buying a property rather buying it because you simply ‘like it.’
Not knowing your tenants and their business: Its very important for property landlords to screen the tenants using their credit reports and financial information. If you are buying any commercial property for sale in Jaipur, you must verify that the tenant is creditworthy and assess that his/her business will not fall apart. After all, it’s their business plan which will pay you rent throughout the lease period. You should also take location of other businesses as your tenant’s near your property and the competition in the market into consideration while leasing the property.
So, when you buy a commercial property next time, avoid these common mistakes made by the people to achieve greater heights in your business and have much greater yield than your investment.