Make Money with Commercial Property Rentals
September 30th, 2007 Posted in LeasingThe advantage of getting into commercial property rentals is that if they come with a triple-net lease it means that you don’t have much to manage; rather, you can expect good return on your money. The only trouble is that the market is not that easy to get into and there is also a strong possibility of ending up with cash flows that end up being in the red especially if you have vacant storefronts that remain vacant for twelve months at a stretch.
In fact, a triple net lease will mean that you get the tenant to pay the rent as well as the taxes and even the insurance. What’s more, many companies even find it more expedient to rent property rather than tie up their capital in land and buildings. Thus, when you opt for triple net lease you are virtually guaranteed that you get some money back on the amount that you invested and you also won’t be affected by any rise in property tax or insurance rates since the tenant will be paying these amounts as too costs of maintenance.
As mentioned, the only drawback to your idea of making money from commercial real estate rentals is that your property may remain vacant for a year or even more and finding a suitable tenant is also something that takes time unlike in the case of residential real estate. Thus, your best bet would be to either get somebody to mentor you or study in-depth the market before you venture in commercial real estate rentals.
