Did you recently buy a commercial property? If you’re not an excessively wealthy person, you must have taken out a commercial mortgage loan in order to buy your property. We all know that lenders ask for your business plan before giving you the mortgage loan as they hesitate to take risk of lending money to a person who can’t be sure about his returns. If you take out a mortgage loan of an amount that you wished for, then you should always try to boost the commercial real estate returns so that you can effortlessly repay the mortgage loan amount without having to fall back. Here are some unusual ways of boosting your rental returns on your commercial property so as to gain maximum returns.
Hire an effective property manager
If you want to ensure that your real estate property is well-managed, you have to hire an effective property manager. Good and worthy property managers are difficult to find and they should be licensed in order to prove their authenticity. Get help from a person who has been into the business or the commercial real estate industry for a large number of years.
Manage your property on your own too
Only hiring a property manager and leaving the entire task on him is not all that you can do to maximize your returns. You should also be equipped with enough information to do some tasks on your own. Though the experienced managers may take the best care of your property, you must also look into the property on your own.
Increase the rent with time
Whenever you get a chance to increase the rent of the property over time, you should do so. If you let the rent to stay at a normal level, you may start incurring losses. Find out the market rent so that you can easily change it. However, make sure you don’t keep the rent rates too high as this will make the property remain vacant for months.
Claim the tax-deductions
The next step that you can adopt is to contact a quantity surveyor and demand a depreciation schedule. This will list all the items and products in the property that can be easily depreciated and that in turn can lead to a larger tax refund. If the professional fee of the quantity surveyors is more than the benefits on taxes that you’re entitled to, they’ll not charge you for the schedule.
Renovate the property
You should be aware that a new coat of paint, resurfacing the bathroom and adding some new floor coverings can increase the rent by at least 10%. On the other hand, if you decide to put a new kitchen or a dining space, then this will increase the worth of the rental property. The more you update your property; the better will be the returns.
Lastly, when you’re thinking about boosting your commercial property returns, you should follow the above mentioned points in order to increase your returns. Monitor your rental payments and save money from what you earn so that you can repay your mortgage loan with ease and avoid the risk of losing your home.