How to Handle Commercial Property Investment Dilapidations

commercial investmentHaving a commercial property investment for lease may be good business but it doesn’t come with its own headaches. Dilapidations for one are a very common issue between tenants and landlords.

It is a dispute that arises when the property has come to a state of disrepair and the party or parties that are required to perform the repairs and maintenance failed to do so. In this case the conflicting parties would wish to impose monetary damages, specific performance or a combination of both to the party at fault. As the landlord, owner or investor, what is there for you to do? We’ve got some tips.

  • Be professional about communication. – There will always be time for dialogue and conversation. See to it that you take the discussion professionally. No shouting, bantering and foul words should be involved. Point out your side and hear the other party out as well.
  • Find a counsel, advisor or expert to guide you. – If you are not versed or skilled in doing matters involving dilapidations or even confused about it then you might as well find somebody qualified who can help you from start to finish.
  • Find all your important papers. – Be sure that you also have with you all your important documents which includes the lease contracts, memorandums, notices, agreements and any other written papers that will aid and guide you in determining who bears how much.
  • Have the property examined by a professional. – To determine the exact damage caused by the failure to maintain the upkeep of the asset, calling in a surveyor to make a complete and thorough assessment will be your best bet. They will hand in a carefully studied and expert given report as to the monetary amount of damages and its impact on the property and other adjacent or joint assets.
  • Know your legal rights and do your own research. – It is also highly advisable to perform your own research. This gives you a basic idea if not more about what you are going to deal with. Even if you have professionals by your side it is still best to educate yourself. It gives you a good head start.
  • Ensure complete documentation. – When you settle and agree about the output of the dilapidation case on your commercial property investment, always put it into writing. Complete documentation will free all parties from any possible headaches in the near future.

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Property Auctions and Its Benefits to Sellers

property-auctionFor the most part, people have always talked about how property auctions are a good place for buyers to make the best acquisition deals. A lot of tips and tricks have also been written for them but how about the sellers? How do they benefit from it and what’s in it for them? Get to know the answers as you read along.

First things first, let’s introduce property auctions to those who are fairly new to it. By definition, it is an intense, accelerated, innovative and effective marketing method that involves the public sale of real estate assets, residential, commercial and industrial, through open cry, competitive bidding.

There are two main categories of sellers in a property auction, one that sells the property for profit and the other that does so in order to reimburse unpaid debt with a foreclosed property. Both receive similar benefits as follows.

  1. They get to take advantage of the market’s interest. For the buyers, auctions are one of the places where an asset may be bought for a cheaper price as compared to when the same is sold straight in the market place thus sale is always accelerated. This is why sellers are guaranteed that the bidders come with interest and the property sold fast.
  2. Buyers come with financing. It would be silly to bid and not have the resources to do so as most auctions require bidders to hand in a security deposit and even require pre-qualification financing. Moreover, an upfront payment may be required of the winning bidder and the remaining balance must be paid within the time frame given. This is why buyers already come with money in their pockets, figuratively and literally.
  3. You get rid of long term carrying costs. The longer a property remains unsold, the higher they cost you since taxes as well as repairs and maintenance can pile up. With an accelerated and quick sale, you get to cut these off early on.
  4. A return is guaranteed. As a seller, you can require a minimum or starting bid which can either be the exact market value on the property or higher than it to guarantee a return. Moreover with the competition among buyers especially with a good asset at stake, the amount can surge higher and higher.

Property auctions may not be familiar for everyone but with the benefits involved they are definitely worth considering.

What Buyers Look for in a Retail Property for Sale

commercial propertyWhenever we purchase, we always aspire to get only the best. We want the best value for our money. We’d even love to score a steal should it be possible. This is true even to companies, landlords and investors who are looking for a retail property for sale. In fact, the efforts are even heightened given the values that are being juggled. Fixed assets pretty much have high price tags. Some may cost less and may even be deemed more affordable than others but this does not diminish the fact that they have significant costs. It’s not mind boggling why buyers will want only the best.

Now, what characteristics make up the best retail properties? Here’s a list from for you to peruse.

It has good demographics. – Users of retail space will want customers to flock their businesses. One way to ensure that is through promising demographics. Know how people and shoppers move about the area. What are their buying patterns? What establishments do they like to frequent? A property that delivers such needs is prime.

The location is on point. – Close proximity to transportation hubs, roads and highways and even populous establishments are great for any retail asset. This is because such factors create accessibility and when a place is easily reached, people find it convenient to come back again and again.

It allows for a great tenant mix. – There are many types of retail properties but majority tend to be structures that cater to several tenants all at once. A good retail property provides and caters to a great tenant mix. This means that different lessees or buyers will congregate on the property eventually making it a hub of sorts. This is great news as it promotes customer diversity opening up chances to expand market reach. When this happens, your investment becomes better valued.

The useful life is longer. – The more years there is to the asset then the better. Of course, this is not the sole factor to focus on when buying such assets but it is one that should be majorly considered. More years make lesser depreciation rates and that means you get to make use of the asset for a longer period of time or sell it out for profit in the near future.

It has the low ongoing costs. – When seeking a retail property for sale, always check its ongoing costs. The repair and maintenance expenses are a significant disbursement that cannot be foregone. The smaller it is then the bigger savings you get.