Florida residents may not give commercial property much thought when it comes to becoming a landlord. However, buyers may actually be better served by investing in such properties. First, commercial property values tend to remain more stable over time when compared to stocks or similar investments. This is because both the building and the land that it sits on have value.
Commercial tenants tend to be better than residential tenants because they will handle most maintenance issues on their own. Therefore, an investor may not have to take a phone call in the middle of the night demanding an emergency repair. Knowing that there is a team to maintain the property may also help to preserve its value both now an in the future. Commercial tenants may also pay to insure the property, which may cut costs and result in higher returns on invested capital.
Commercial properties tend to appreciate over time, which means that a property owner can benefit from consistent rental income as well as make a profit when it comes time to sell the building. In general, commercial properties tend to generate higher rates of return compared to residential properties. This is generally because tenants will likely stay in the building for many years as it provides stability for their companies.
Those who are looking into buying a commercial property may wish to consult with legal counsel beforehand. It may be possible for an investor to learn more about his or her obligations as a landlord such as ensuring the safety of those who may use it. Legal counsel may also be able to review a purchase agreement or a rental agreement with a potential tenant. This may increase the odds that a deal is in the best interests of a property owner.