Real estate is a tricky industry. You can find tremendous success, but you’ll need to invest heavily at first, which is risky. You must be willing to put in the time, effort, and money required to see progress. But what happens if you’ve already done that and you’re still not seeing results? Fear not, there’s still hope to get some ROI from your property. Here are a few ways that you can increase the value of your commercial property.
Renovate
Renovating is one of the most apparent methods of improving the value, but it doesn’t hurt to mention, even if you don’t want to hear it. Renovations can be expensive, but what’s worse is losing out on a property that has potential. Renovating can include restoring any interior or exterior elements of the property. Everyone likes to feel as though they are witnessing the latest in design and architecture, so the newer the design, the larger the crowd you can draw in. Renovating also gives you the ability to hike up the rent cost as well.
Change the Use of the Property
This might be a bit of an extreme situation; however, if you’re struggling to see ROI for your property, then it might be time to consider this option. It can require a massive renovation, based on the previous use of the property, but it can be worth it. For example, if you originally had an apartment complex in an area that isn’t doing too well, you might want to consider retooling the building to be more of a hotel. From there, take advantage of the sharing economy (i.e., Airbnb) if your area permits it.
Sub-Meter Utilities
Sub-meter utilities might sound counter-intuitive, seeing as how sub-metering the utilities of a property forces tenants to pay for their utilities. Still, it can be quite a boon. Most tenants want to save costs just as much as you do, so if you install a sub-metering system, then they would have full control of their utilities, including the costs. You will no longer be responsible for footing this cost and would likely see a drop in bill costs overall.
These are only a few of the ways that you can increase your commercial property value. Take your time, think long and hard about it, and implement a few of these tactics. They could be what you’re looking for on your road to success.