Your business consists of several buildings that you rent out to tenants. Although things are going smoothly with your leases, you wish to find ways to make more of your investments. Updating the facilities that belong to you, increasing what people pay you each month to live or work there, and evaluating what you spend on the operational side will increase your cash flow and raise the worth of your structures and land. Here are a few ways that you can increase the value of your commercial property.
Update the Facility That You Are Renting
To keep the commercial properties that you own competitive in the market, you will need to make the necessary improvements that will entice individuals to rent from you. This may require a small business loan to do, so you will want to schedule this over several months to give your paperwork time to process. Since it is a renovation, you should be able to qualify for financing if you have a good credit rating. Evaluate the buildings that belong to you and note what should be repaired and what you could do to make the space more modern and efficient. Reach out to a few contractors and get bids for the job. Determine which will work in your budget and who you feel comfortable collaborating with. Set up a timeline to complete the project and inform your tenants who already live or work in the structure that there will be construction happening in the future and when it will be.
Increase the Rent That You Charge
You want to increase the cash flow to your business in order to add value to your organization. One way to accomplish this is to increase the rent each month that your tenants pay to you. Give them ample time to prepare for the change before it goes into effect. Depending on your situation, you may be able to give the current occupants of your buildings a break by leaving the rate as it is and apply this to new individuals or companies that are coming in. Contact your lawyer, and ask if you will need new contracts written to reflect the new charge. They can also advise you about the correct way to go through this process to ensure that everyone remains happy even though they will be paying more.
Evaluate Your Business Expenses
You want to increase the value of your properties while leaving the rent that you charge the individuals to live or work there the same amount. You can increase the cash flow to your organization by evaluating what you spend your money on and eliminating the items that are less than necessary. Analyze your bank statements for the last few months and highlight the charges that you believe are frivolous. Get estimates on the products and services that you use that may seem overpriced. You could find a new vendor that offers what you are currently purchasing for less money. Make these adjustments to your budget then re-calculate the figures to ensure that it is enough to affect the worth of your facilities.
Market To a Different Demographic
You have several openings in your buildings that you rent to companies to operate from. However, the housing market in your community dictates that there needs to be more living spaces for people searching for homes. One way to increase the value of your properties is to renovate these commercial spaces into apartments or condos. Talk with a builder and get estimates of what it would take to change your existing structures into residential. Give your current tenants enough time to find a new place to work out of or refigure it to work with both businesses and individuals. You may be able to accommodate them at another facility that belongs to you or refer them to someone that you trust in the industry. You are looking for ways to increase the value of your property so that you bring more cash into your company while competing against others in the real estate market. Reconfiguring your spaces to fit a different demographic, charging more rent per month to your tenants, and renovating your facilities to be modern and efficient are ways to attract new business and boost your revenue throughout the year.