Commercial Real Estate Investing For Dummies

Chapter 18

Ten Ways to Increase Your Property Value

In This Chapter

Tried-and-true ways to increase commercial property values

Increasing your net worth with a few simple steps

After you close on your first piece of commercial real estate, we suggest investing in your own investment. You can take simple actions to increase the value of your property. Because commercial real estate is primarily valued on the amount of net operating income it generates, it’s smart to think of ways to increase your net income and to increase the overall value, equity, and profit of the property.

Commercial real estate overall is very dynamic and not as immovable or inflexible as most people think. You can implement simple strategies, such as raising the rent or reducing your expenses, or you can do complex things, such as changing the use of the property or hiring a new management team. The choices are yours for the picking.

In this chapter, we offer ten ways to put more money into your pockets.

Raise the Rents

If your rents are below the market average, you’re losing out on so.me precious earnings. Lucky for you, the easiest way to increase the value of your commercial property is to raise the rents. To find out if it’s time to raise your rents, get on the phone and do a quick survey, call your ...