If there’s one sure way to increase a commercial property’s value, it’s by making improvements. Some owners, though, look at renovations as a luxury more than a smart business move. Do you share the same opinion? These remodeling benefits might change your mind.
Retain Your Current Renters
An interior and exterior makeover allows you to keep your tenants happy by addressing their maintenance concerns and other requests. Find out what issues your renters are facing and what features they would like to be added to the property.
Perhaps the unpaved parking lot has been giving them a headache. Maybe they could use a space where they can spend their lunch breaks or socialize. Since people are getting more conscious about health and fitness nowadays, consider converting an unused space into a small gym. It’s also a wise investment to install a security system.
When your tenants are satisfied with how quickly you respond to their problems and how you value their needs and opinions, they’re more likely to stay. You can even make rent hikes more justifiable, given the recent improvements.
…And Lure in New Ones
You might attract new renters as well when you give your place a facelift, and it’s more than just because of the apparent reason that well-maintained properties are tenant magnets. In leasing commercial real estate, just like in any business, word of mouth is the name of the game. Please your customers now, and they’ll recommend you to other people, basically doing the marketing work for you.
Avoid Expensive Fixes and Overhauls Down the Road
Investing in improvement today does not only help you fetch top-dollar for your property; it also lets you save money in the future. You see, remodeling isn’t all about aesthetics. When you successfully target structural issues during the renovation process, you’ll save yourself from costly repair and utility bills in the long run.
If your roof is missing shingles, for example, make sure to include it in your next improvement project. Waiting for the daylight or rain to come through the roof before turning to commercial roofing contractors would lead to further damage to the property. Don’t forget to check the windows as well. Poorly sealed and leaky windows need to be replaced right away as they cause the energy bills to skyrocket.
If your property doesn’t require such major structural fixes, you can opt for small changes that make a noticeable difference. Adding a fresh coat of paint can give your place a clean look and a brand-new feel. A regular landscaping work goes a long way as well as it makes the property more welcoming to tenants and prospects alike.
Open a New Stream of Income
Another good thing about planning for a renovation is that you’ll discover more earning opportunities. As you review the floor plan, look for unutilized spaces and frequently vacant rooms. Think of ways to maximize them.
For instance, you can turn the space under a staircase into a small storage room and rent it out to your tenants. You may also investigate why certain units seem least attractive for prospects. Perhaps, you’ll generate more income if vacant rooms are converted into shared spaces, such as a cafeteria or an on-site fitness center. The key here is making every square foot count.
A renovation does take a lot of money, but it would pay for itself within a few years. If you’re thinking whether or not to push through with property improvement plans, go back to the benefits mentioned above. Ask yourself, “Isn’t it worth it?”