Commercial real estate investing has stood the test of time as a solid way to build wealth. Sure, even real estate properties can fluctuate in value in the short term, but most buy-and-hold investors collect profits eventually.
However, finding a golden property at a bargain price isn’t enough to guarantee investing success. You’ve also got to find qualified, dependable buyers or renters to make it work.
Here are some tips to help you attract good tenants and buyers to your property.
Research and Perform Background Checks
As your listings bring in new applicants, it is important that you thoroughly vet each of them so that you don’t waste time and resources with buyers who will never close the deal or with tenants who will cause you headaches later on. You should use all resources legally available, including financing verification, background checks, income verification, work history verification, criminal background checks and eviction records.
Lay Out Expectations in Writing
Put everything in writing and keep signed copies for future reference. This includes not only contractual agreements but also CC&R’s, lists of features and benefits, payment schedules, procedures for filing complaints and work orders, and anything else that you discuss with potential buyers or tenants.
Be a Good Landlord Yourself
Respect and courtesy go a long way in securing good tenants and keeping them around for the long haul. Being a good landlord is key to your success.
Keep lines of communication open, be thorough and prompt when fulfilling your landlord responsibilities. And be willing to make short-term sacrifices to preserve relationships with good tenants who always pay on time and take good care of your property.
As for selling your commercial real-estate property, the same principle apply to buyers. Always be honest in your business dealings, and always act in good faith.
Get Help with Pre-Screening Applicants
Every commercial real estate investor should build and maintain a strong network that includes successful real estate agents and realtors. When seeking out new buyers or tenants for your property, tap into your network and let those real estate professionals pre-screen potential buyers and tenants for you.
For instance, if selling a single-family home, start by holding an open house for realtors and agents only. Work closely with them regarding your expectations and opportunities and let them do some of the heavy liftings so that they can bring their best offers and most qualified buyers.
If you are interested in investing in commercial real estate and are looking for ways to finance your next property, contact Triport today for more info.