Gambling In Real Estate? Residential Properties A Safer Bet
If you have been having some thoughts about buying real estate, whether Residential or Commercial, this article will give some thoughts about why Residential properties are the safer investments in today’s economy.
In my experience, I have seen commercial tenants who continually rack up rent charges, and try to make deals with the owner to pay smaller rent amounts and have him write off an outstanding balance for “good behavior”. I have also witnessed, as Frank writes, tenants close their business doors one day and leave “in the middle of the night”. It is not uncommon in this economy for even a small commercial space to sit vacant for a year or longer.
Property management companies that deal with both commercial and residential properties are relying these days on their residential portfolio to get them through the tough times. Management fees of commercial properties are low, and residential rents are the steady source of income. The brokers of those “dual” companies are devoting their time hitting the pavement searching for commercial tenants to not only increase their business, but hopefully get extra income from the commission when a new lease is signed.
To finalize this piece, I will end with saying that in this economy, residential properties as investments are coming out ahead. Commercial properties are for those willing to handle high risk and high vacancies. Everyone needs a place to live; not everyone needs a commercial space to run a business. Keep in mind that, as Frank states, “Residential properties usually require a lot of hands-on management”, but rest assured that Real Property Management Select is here to take care of your investment property.
Investing in Real Estate: Should You Buy Residential or Commercial Property?