A critical indicator of commercial real estate assets is the amount of net income produced. Investors need to look for real estate investments that can give them a good rate of return as well as a solid income. There are many ways you can create revenue with commercial properties and many investors occasionally find themselves confused by them. They will either try too many all at once, leading to results that aren’t near what they expected. Or, they won’t try any and sit on their investments waiting for them to grow themselves.
The best way is to take some tried and true revenue streams and improve on them. If you feel that you are doing too much, start slowly and use one or two methods until you get the hang of it. Here are some ways that effective property investors create revenue in their commercial real estate investments:
Increase rent: It’s the most direct and obvious way to ensure higher revenue. Many real estate investors price their real estate properties too low. With a 10-unit apartment, you could add nearly $2,500 of annual revenue by increasing the monthly rent by $20 per month. Increasing rent is a good option if your apartment has good overall quality. People won’t leave the building if you also provide them with better services. Small incentives will mean a lot for your tenants.
Reduce expenses: It is the most basic step to increase your overall profitability. Reducing costs should be an ongoing task for any real estate investor. There are many ways to reduce costs and you need to check your outgoing expenses to determine cost components that can be eliminated or reduced. You might reduce utilities, cleaning or advertising costs. It is also possible to reduce expenses by assigning heating and heat costs as tenant responsibilities.
Set up social media presence: It is always a good idea to invest time in maintaining a regular social media presence. Even if there are no vacant units in your apartment, social media can be used to fill them. Plus, eventually a rental unit will become vacant and it’s easier for you to look for new tenants through social media.
Create quality images and videos: When people are shopping for new real estate properties, you can make a huge first impression by using high quality images of your real estate properties. These images should show people how your real estate properties look and make sure that they evoke favorable emotions. You need to highlight these images in your social media pages and blogs. This is still a simple and very effective strategy. Videos are always more powerful than still images, so you should give option for your potential tenants to watch your videos. However, poorly-made images and videos actually ruin your credibility and lower your chance of getting quality tenants.
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