The Benefits Of A Commercial Property Investment
More often than not, when considering investing in property, people will automatically turn to residential property. Whilst there are numerous benefits to opting for residential property, whether you choose property development or serviced accommodation, there are also lots of reasons why you should consider commercial property investments too. You will be surprised just how beneficial this property investment strategy can be to investors.
Whilst there is no denying that commercial property investment does work slightly differently, this doesn’t mean that you should overlook or disregard it. Whether you have invested in residential properties in the past or not, one brilliant investment strategy involving commercial property that you should consider is renting commercial space. Below are a few of the biggest benefits for choosing this commercial property investment opportunity.
Higher return on investment
Property is known for being a long term investment and one that you can continually make money from. When you choose to invest in a commercial property to rent, whether it is an office space, retail space or even warehouse, you can trust that not only can it provide you with a huge rental income but, you can also expect to benefit from capital growth. In general, you can expect a much higher return on investment with commercial properties.
Much longer leases
One of the biggest worries for investors when choosing a buy-to-let property investment strategy is continually having tenants. Thankfully, when you invest in the commercial property market, you can expect to have business tenants who wish to sign a longer lease than residential tenants. Often, companies are looking for a premises they can stay in for a long period of time which will provide you with peace of mind and remove any worry related to finding tenants.
Your investment is looked after
In order to benefit as much as possible from capital growth, it is important to ensure that your property is well looked after. This is something that tends to be easier with commercial properties too. In general, companies will want to ensure their premises are giving off the best first impression, so they will look after your property. You can expect them to keep the property well maintained and take additional precautions, such as installing security systems too.
Professional tenant relationships
Being a landlord can come with its own worries for property investors and if you don’t wish to outsource this job, then you’ll be happy to know that the relationship between landlord and tenants at commercial properties tends to be much more professional. This business to business relationship will help to prevent some recurring issues landlords face in relation to their tenants. This is likely to make this job much less stressful for you during the lease.
Increased commercial demand
Whilst many fear that the high street is dying and this puts them off making a commercial property investment, due to the fact that there is such a vast range of properties to invest in, you can easily find a property that is in high demand. Similarly to residential properties, taking your time to get to know the market will help you ensure you make the right investment. Remember, the majority of companies tend to rent their properties too, it is very beneficial for them.
Shorter landlord working hours
Another common worry for property investors who will be becoming landlords is the additional working hours. It isn’t uncommon for landlords to be required 24/7 and their tenants can call at any time if they need assistance with the property. However, when you’re a commercial landlord, you are likely to have shorter working hours. These hours tend to be the same as the tenant’s company business hours which can be much more convenient.
Making a commercial property investment
All in all, it goes without saying that if you’re interested in investing in property and specifically renting/letting a property then you should consider a commercial property investment. All of the benefits mentioned above are incredibly desirable to property investors and there is no denying that this type of investment really could be the best possible property investment strategy for many looking to start a property business.
If you would like to find out more about investing in commercial property, please don’t hesitate to visit the Fielding Financial website today. We have a range of online courses, books, free downloads and blog posts, all of which can be incredibly helpful when investing in property. You can trust that with our help, you will develop your knowledge and skills enabling you to go on to successfully invest in property. Don’t hesitate to get in touch today if you have any questions at all.