Top Tips To the Cash Flow of Your Commercial Property
As a commercial real estate property owner, it’s always helpful to look for ways to maximize your cash flow. Many of the methods of accomplishing a higher cash flow will also make your tenants happier while improving your profitability.
The tips below can be implemented to improve your cash flow, along with meeting with a commercial real estate attorney in South Florida for further advice.
Aim for Preventative Maintenance
Routine maintenance of the property will lower tenant complaints and ensure a safe working environment. It will also reduce the likelihood of major repairs and building issues. Although there is no way to completely eliminate the risk of these issues, preventative maintenance will go a long way in doing so. Few things will hurt your cash flow more than an unexpected major repair.
Improve the Property’s Energy Efficiency
By increasing the energy efficiency of the property, it will lower operating costs and allow the potential for higher profit rental agreements. Although it may take some time for a profit to be turned after the initial upfront investment, it will add value to the property and attract higher quality tenants.
Some examples of upgrades might include replacing outdated light fixtures with efficient LED fixtures, installing programmable thermostats in the building, motion detecting lighting and more. It’s better to start small with lower cost energy efficiency upgrades, note their impact on your building performance and profitability, and scale them upward.
By adding new amenities like reserved parking, luxury kitchens, event spaces, renovated bathrooms, outdoor seating areas or new flooring, it can make a commercial property much more attractive to potential tenants.
Tenants who are looking for these particular amenities or others will often be willing to pay a premium for them. Find out what potential tenants are seeking in your property and update it accordingly and if the budget is available.
Market Vacancies Aggressively
Even when your building is fully occupied, it’s always a good idea to have a basic marketing plan ready to go as soon as a vacancy opens. Every vacant unit hurts your cash flow, and having an aggressive marketing plan ready to launch will always prove to be useful.
Utilize every cost-effective marketing strategy that has worked in the past and experiment with new ideas. It’s much easier to have a marketing campaign ready to go rather than starting from scratch when you have a vacancy.
Mark Schecter is a South Florida commercial real estate attorney who can answer any questions you may have about buying or improving commercial property in South Florida. Call today at (954)-779-7009.