Sep 22 2023
Commercial properties available for rent offer outstanding earning opportunities. As with any business model, seeking new opportunities to increase this financial yield will always be a priority. Experts claim that a rental yield of around 10.7% is possible with commercial properties. If your building is not achieving this, it could be time to investigate ways to improve your earning potential.
On paper, increasing a profit margin based on rental yield is simple – just increase the monthly chargeable rate. Alas, increasing rental margins above the market rate can understandably lead to ill-feeling among incumbent tenants. Reliable tenants are worth their weight in gold when managing commercial properties, so it’s advisable to do whatever you can to retain them.
Rent increases are a fact of life and are undeniably a way to increase profits – provided these increases remain fair and are introduced fairly and strategically. However, in addition to this approach, consider increasing value for tenants. We’ll discuss seven ways that commercial buildings can be enhanced enough to justify increases in monthly charges.