Real estate investing is a solid way to generate a long-term income and produce profits with stability. The purpose of investing in a commercial property is to provide a source of income. You may be constantly hearing about people gone from rags to riches in a matter of few months by entering the real estate world. It is not entirely false- you too can make money by investing in commercial properties. But, just like every other endeavor, this one will also require a strong commitment, a will to seek the right knowledge and fulfill the required responsibilities. There are numerous types of commercial properties ranging from office buildings, shopping centers, hotels and apartment buildings. The ways to make money from a commercial property is as diverse as the type of properties that fit into this category but some types of revenue are unique to certain properties. However, there are a few basic ways in which one can generate income from a commercial property. Here’s how:
Renting it out
One of the most traditional way of making money from your commercial property is to charge other people for occupying and using it. Whether you own business premises that has an additional space which can be rented out or have invested in commercial property as a third party, this primary method is always a successful way of generating an income.
Another good way of making an income out of your commercial property is by adding value to it and to sell it when the property has appreciated. You can increase the value of your commercial property by improving its condition and by investing in sleek interiors and clean exteriors.
Including billboards on your commercial structures offers you a unique opportunity to monetize your property. This will depend on the location of your commercial property, ideally you can benefit by this if you own a property in a prime location by a busy road. By marketing your exterior walls and offering billboard placements to clients, you can generate a decent income.
Installing solar panels
You will be benefiting the environment along with yourself with this option. Installing solar panels is becoming extremely popular, this is an investment which can create a new lucrative income stream from your commercial property. Moreover, a solar powered establishment can help a landowner’s property turn out to be more appealing to potential occupants to draw in a quicker tenancy and possibly higher rates too.
One of the most effective ways of making money from your commercial property is to charge for the additional services that you offer. For example, if you decide to lease your office building and retain the ownership of the parking lot, you may charge a parking fee to the users. this way you will be able to generate extra income as employees and clients will use the parking lot to park their cars.