Investing in residential and commercial properties has been
proven to be quite prosperous for many people.
But which types of real estate seem to be a wiser investment
decision?
Let’s take a look at a few topics that are covered when
thinking about investing.
One of the main strengths that commercial real estate
properties have over residential is the quality of their leases. Typically, residential tenants pay on a month
to month basis. This can be quite
bothersome if someone is simply looking to invest and make some extra
cash. Alternatively, commercial real
estate usually possesses leases that span over multiple years. These are much lower maintenance, and
typically more preferable to investors.
When it comes to repairs, it’s usually the lessee that has
to pay for residential repairs. A lessee
can be expected to be woken up in the night to come fix a refrigerator, clogged
toilet, air conditioner, etc. Commercial
real estate investors don’t have to deal with that headache. Most times commercial real estate repairs
fall under the leaser.
Another strength that commercial contains is that they have
the law enforcement on their side. Well,
more so than residential, that is. When
you own a residential property it is very difficult to evict tenants. When it comes to commercial it is much easier
for a landlord to evict an unruly tenant.
Furthermore, commercial real estate will yield you less wear
and tear. If you are renting or leasing
out your residential property chances are the person or family will be living
there 24/7. They will constantly be
using the utilities and appliances. With
commercial, you typically don’t have that.
Most businesses utilize their property during normal working hours, and
then lock it up and leave it alone for the night.
On the grand spectrum of investing, commercial real estate
investing always seems to take the cake.
They bring in more money, and require less upkeep. Commercial real estate is a growing market.