Making money from commercial space for lease in Edmonton is usually a worthwhile investment. The amount that you can potentially make depends on the level of risk that you are willing to take. Most importantly, it is essential to make smart decisions upfront. Although there are risks involved, this is an excellent way to build wealth when done correctly.
When owning commercial space, you need to undertake due diligence that may not be readily available, so you need to be patient and committed. Because real estate is one of the world’s largest asset classes, it tends to attract potential investors who anticipate being successful. If you want to make money off commercial space for lease in Edmonton, the following tips will help.
Helpful Tips for Commercial Investing
- Commercial Property Specialist – Especially if you are new to or have little experience with investments, seek help from a reputable commercial property specialist. This individual should offer years of experience, updated training, and expertise specific to the analysis and acquisition of commercial properties.
- Organization Membership – You want to work with a broker who is a member of a national organization that maintains the code of ethics for commercial investments. As part of this, you can determine whom the broker represents by requesting a disclosure agreement. This will enhance confidence that the broker is professional and honest.
- Investment Return – Make sure that you receive accurate data pertaining to expenses and the potential return on investment. Often, selling agents understate the average annual cost of maintenance and repairs. In addition, you need to know the estimated management expenses. Although you can do the professional management on your own, many investors hire someone for a fee.
- Additional Finances – You must verify all costs for the commercial space for lease in Edmonton. In fact, demand to see the last three to five years of tax returns, as well as cost information for property taxes, legal fees, utilities, repairs and maintenance, insurance, tax preparation, management, and so on. Typically, these expenses account for roughly 40 percent of the rental income, if tenants pay everything except for the water.
The bottom line: To make money by investing in commercial space for lease in Edmonton, you need to work with the right professionals and uncover as much information as possible. This will help you weigh the pros and cons to determine if the investment is a smart move.
With the right commercial space, you will see a return on your investment. Please call us or visit our website today for assistance.