Many investors cannot make decisive choices between residential and commercial real estate ventures. While both offer significant returns to those who venture in them, investing in the latter is more advisable. Let's take a look at the 7 advantages that make commercial real estate the best among the two options.

 

Rental income in commercial property is based on each square foot that a particular space occupies. This feature is advantageous because you will get higher returns for your investments. With residential real estate, rent is calculated based on different factors altogether, meaning that your returns may not be that good.

 

The fact that most businesses operate for select hours of any given day means that property management is eased considerably. Venturing into residential property means you have to stand prepared to deal with frequent late night calls from tenants. When compared to residential property, commercial property management costs by a professional firm will be much lower in the latter.

 

There is a guaranteed stream of rental income in commercial property because leases range from 3 to 10 years. The situation is quite different with residential property from http://fallschurchestate.com/where the longest lease you can find could be a year. The fact that a business organization is not likely to move its offices from building to building in the short-term means that there are high chances that the lengthy contract will be renewed when it expires.

 

Commercial properties' asking prices are set objectively in all cases. Simply put, your offer will be determined chiefly by the current and potential returns you expect from rent income. On the other hand, the value of residential property is quite hectic to determine accurately because it is often based on emotional pricing mechanisms.

 

The relative costs of maintaining a fallschurchestate commercial property are very low when compared to those you may incur if you invest in family homes. One reason for such an occurrence is the fact that business organizations are always careful about image, and they will take all precautionary measures to keep the building in good condition. The long-term leases also mean that your property will be maintained in good condition all through.

 

It is less risky to invest in commercial property as compared to residential real estate. Missing rental income from several of your commercial units will not cause a significant impact on your finances. With residential real estate, you lose your entire income if a family home is unoccupied.

 

Entering into the commercial property scene entails a relatively lower investment outlay when compared to venturing into the residential property sector. You can, therefore, get into the market much sooner if you opt for the former. Get more resources from http://www.huffingtonpost.com/news/real-estate/.