When you own a piece of commercial property, you have the option to either rent it or sell it, depending on what would be best for your bottom line. A lot of investors are purely in this business for the sake of reselling the real estate they buy, but the fact is that renting may be better suited for you from time to time. Before you decide to sell or rent your property, you need to weigh out your options. Here are some tips to get you started.
Consider The Market Conditions
Are you in a seller’s market right now or a buyer’s market? If you’re in a buyer’s market, it may be best to hold onto the property for a little bit until you can sell it for top dollar. In the meantime, you can rent out the space and make money off what would be an empty building. This is a little tougher to do with a lot of land, but it is possible if you planned on building on it anyway. If you’re in a seller’s market right now, take advantage of the money you could be earning from your property.
Will Future Buyers Want Tenants?
If you intend on selling your property to another investor who will use it to rent out to other business owners, it may be in your best interest to start finding renters now. Then when you go to sell the property, you can advertise the fact that you already have contracts lines up for the next few years. If an investor can see that there is already money coming into the property, he or she is more likely to pay big money for it.
Can You Handle The Stress Of Renting?
In some cases, renting out your property is just too stressful to endeavor. You have to think about whether or not you want to deal with that or if you just want to wait until someone comes along to buy it. You will be responsible for maintenance needs and overall care of the property until you sell it, unless you have a contract that states the tenant will be in charge of that. If you have the manpower to handle this, you could make a lot of extra money temporarily or permanently renting. In the end, it’s all up to you.