Owning a commercial building is the first step towards making a substantial passive income. This is the ideal way to earn a living, and the key is to know how to maximize your earnings.
But what strategies can help you make as much money as possible from your retail property? The number of options can seem overwhelming, and unfortunately, not all of them are profitable.
The good news is we’re going to outline five of the most lucrative ways to benefit from your commercial real estate. Keep reading to learn more.
1. Utilize Smart Technology
As a commercial property owner, you’ll want to impress potential tenants so they’ll be happy to pay higher rental costs. With the progress in smart technology, you can use keyless entry systems and install heating systems that leaseholders can control from an app.
By using technology to modernize your premises, you’ll ensure it stands out from other nearby retail properties. You’ll then easily be able to justify charging more money.
2. Offer Flexible Rental Periods
The ideal scenario is to have long-term renters that provide you with a steady income. However, this is not always possible, as not everyone will want to commit to an extended lease period.
If you’re willing to offer shorter rental terms as well as longer leases, you can increase occupancy rates and make extra income.
3. Provide Additional Services
Your tenants may be interested in paying for extra services that make their lives more convenient. For example, you could offer catering at lunchtime and hire a local company to deliver meals. By charging your leaseholders more than you pay the caterers, you can make a profit.
If you’re unsure what services your renters are interested in, you can ask them and then decide if you can provide what they need.
4. Make Money From Advertising
One of the best ways to increase retail property revenue is through owning a billboard. Companies are willing to pay considerable amounts of money to advertise, and you can offer them the perfect solution.
When companies are renting your billboard, you’ll have a completely passive income stream.
5. Add More Space
You can generate extra money as a commercial building owner by increasing the amount of space you have available. This can be in the form of adding an extension or buying buildings already attached to your property.
While this can be expensive, it can pay rich dividends in the long run. You can also keep costs low by taking out a loan and paying it back over several years.
Your Retail Property Can Be a Goldmine
When you own a retail property, you have fantastic money-making opportunities. Using smart technology on your premises can be a great idea, and extending your building can be cost-effective. You should also consider providing extra commercial services, and advertising on your property can be highly profitable.
Your commercial space could soon be generating a significant passive income! If this article has helped you earn more money from your commercial property, be sure to check out more of our excellent blog posts.
