Investing in both commercial properties and in residential properties can be a smart way to earn passive income as well as to earn a return on your investments as time passes and the properties go up in value. However, whether you invest in commercial property, residential property, or both, it is important to remember that there are a lot of tasks and requirements involved in day to day property management.
If you are hoping to make a profit from commercial investing or if you want to bring in rent and make income from a residential property, the key to being a success and actually having money coming in is to manage the commercial and residential properties correctly. For many people, it is too time consuming to manage the daily operations and too time consuming and stressful to handle the emergencies that can arise when you own commercial property or rental property.
If this is you and if you find that you are so worried about managing your property, is may be a smart choice to work with a professional residential or commercial property manager.
Commercial vs. Residential Property Management
When you make an investment in property, there are some important differences between a commercial property and residential properties (although you can earn income from both).
Commercial real estate generally refers to land or buildings that are designed not to provide a place for you to live, but instead to generate a profit for you (although in some cases, you might both live in the property and generate a profit from it). For example, an office building would be considered commercial real estate. Rental residences and properties that have at least five separate units are typically classified as commercial property.
Residential real estate, on the other hand, typically refers to either single-family homes or to rental properties or residences that can accommodate up to four separate units. Cooperative units and condo buildings are generally also classified as being “residential” rather than commercial real state.
Unfortunately, many people invest in either commercial or residential real estate without fully knowing what their options are or which option is best for them. Deciding whether to invest in commercial property or residential property is a decision that must be made by careful taking into account market conditions, the operating costs and income of the units being considered, and many other factors.
The best way to make an informed choice is to speak with a company that specializes in both commercial property management and residential property management. A quality property management company can handle the unique tasks that are associated with managing a commercial property as well as the special requirements associated with managing residential properties where people live. As part of its tasks, the commercial property management company can evaluate the different real estate investment options and provide information needed to make a smart choice.
Commercial and residential property management companies also understand that homeowner’s have different expectations when it comes to maintenance and improvements than corporate or business clients in commercial spaces. A good quality property management company can tailor the company’s management services to the needs of the property owner and to the needs of tenants within the building so everyone is happy.
