When taking on any kind of investment, it’s important to weight the pros and cons. As a real estate investor, you may wonder if commercial real estate is right for you. In this insightful read, we explore a few of those pros and cons, and show you how STRATAFOLIO can assist in every step of the way.
There are several pros and cons to leasing out commercial real estate. Let’s dive into a handful.
- Regular income: Leasing out commercial property can provide a steady stream of income for the property owner.
- Tax benefits: There are a number of tax deductions available for commercial property owners, such as depreciation.
- Liquidity: Renting out commercial property can provide liquidity for the property owner, allowing them to invest in other properties or ventures.
- Tenant turnover: Finding and retaining tenants can be a challenge, particularly in a weak economy.
- Risk: There is always the risk that tenants may default on their rent or cause damage to the property.
- Maintenance: The property owner is responsible for maintaining the property and making repairs, which can be costly.
- Additionally, property owners need to consider factors like local economic conditions, saturation of the commercial real estate market and other related expenses.
Mitigate Risk with STRATAFOLIO
Better management of your portfolio and tenants will help mitigate some of the risks involved in renting commercial real estate. Here are a few ways STRATAFOLIO can help:
Tenant management: STRATAFOLIO allows property managers to track tenant information, such as contact details, lease agreements, and rental payments. It also provides tools for managing tenant complaints and work orders.
Accounting and financial management: Our software provides tools for tracking income and expenses, creating invoices, and generating financial reports.
Building and maintenance management: STRATAFOLIO allows property managers to keep track of maintenance requests and vendors, and provides an audit trail of work preformed.
Lease management: Our software provides tools for creating, managing and renewing lease agreements, tracking rents and CAM expenses and tracking lease expiration date.
Reporting and analytics: STRATAFOLIO can generate various reports on occupancy, revenue, expenses and other data that can help property managers to make informed decisions.
Overall, STRATAFOLIO can help property managers and owners to streamline the process of managing commercial properties and make it more efficient, by automating several routine tasks, managing and analyzing data, improving communication and access to information.
Contact us today for a personalized meeting to see how we can help you combat the risks and set you and your portfolio up for success.