Tips for Mount Isa commercial property investors
If you’re thinking of investing in Mount Isa commercial property (or you already have), then there are some fundamental things you should do to maximise your return on investment (ROI). Read on to find out our top 7 tips for doing that.
Tip 1: Do your Mount Isa commercial property market research
It’s important to understand the Mt Isa commercial property market as much as you can before you decide to invest. Talk to an experienced local agent and do your own research on both the local commercial property market and economic conditions.
Tip 2: Buy a new, near new, or recently renovated commercial property
These types of commercial properties tend to be valued most by tenants. They also have lower initial repairs and maintenance costs, as well as higher depreciation potential in terms of tax write-offs.
Tip 3: Buy an already leased commercial property
If you want to secure your Mount Isa commercial property income, then buy premises where a long-term lease is already in place with a high-quality tenant. This will save you the hassle of having to source such a tenant and potentially having a period of no rental income while you do. Vacancy periods affect your overall ROI, so it’s important to eliminate or minimise them as much as possible.
Tip 4: Look for a property that will appeal to a wide range of potential tenants
Buying a property that will appeal to as wide a range of potential tenants as possible gives you the best possible chance of sourcing high-quality, long-term tenants.
The more specialised the potential use of the commercial property you buy, the less potential tenants you will have. However, you will also have fewer properties to compete with in terms of attracting potential tenants, so there is some upside to buying a specialised commercial property.
Tip 5: Source and look after high-quality, long-term commercial tenants
If you do buy premises without tenants in place, then look to source high-quality, long-term tenants as soon as possible. Then make sure you look after them. It’s common to have commercial property leases for five years or more.
You may need to be flexible on some of your lease terms and conditions in order to attract high-quality, long-term tenants.
Tip 6: Carefully consider your commercial lease terms and conditions
Your lease terms and conditions need to be attractive enough for you to source high-quality, long-term tenants, as well as ensuring that you maximise your ROI. It can be a delicate balancing act.
Ideally, your tenants should pay all or as many of your commercial property holding costs as possible, and you should have regular market rent reviews built into the agreement so that you can offset the effects of inflation.
Tip 7: Hire an experienced Mount Isa commercial property manager
An experienced Mount Isa commercial property manager will be able to liaise with your tenants on your behalf, taking care of essential tasks such as:
- sourcing and screening potential tenants.
- ensuring your legal compliance with your lease agreement.
- collecting tenant rent.
- carrying out routine inspections to make sure your tenants are looking after your property.
- arranging for any property repairs and maintenance to be done by approved tradespeople.
About Us
Jays Real Estate has been Mount Isa’s premier commercial and residential and real estate agency since 1981.
If you’re thinking about leasing, selling, buying or renting any Mt Isa property, or you need your property professionally managed, then contact our team today for an obligation-free chat!
We’d be happy to provide you with advice and to answer any property questions you have.