There are countless lessons to learn with investing, regardless of how long you have been a Florida real estate investor. Some lessons are more painful and financially devastating than others, but many are preventable. The experts from All Brevard Property Management are here to share their knowledge about commercial investments. Here are three common mistakes that commercial real estate investors make to avoid.
Commercial Real Estate Mistake #1: Buying without Doing Your Due Diligence
A property may seem nice on the outside and even cosmetically throughout the home, but don’t sign on the dotted line until you do more research. It’s important to hire an inspector to walk through the home and look at the HVAC system, foundation, windows, doors, roof, plumbing, and electrical systems. These are the areas where you can’t see potential problems on the surface. They need an expert eye. These hidden issues are also often the most costly to upgrade and bring up to code.
Commercial Real Estate Mistake #2: Not Hiring a Property Manager
Are you eager to save money? Don’t try to achieve this by trying to manage multiple properties on your own. Some updates you will likely complete yourself, but there are still a number of daily tasks for a property manager to handle. A property manager will make sure all parties comply with the lease agreement and ensure someone is available to handle requests and meet with vendors.
Commercial Real Estate Mistake #3: Not Signing a Contract when Working with Partners
Investing as a group of real estate investors has huge benefits. You have more resources to pool together and more people to divide out the responsibilities. Problems arise when investors do not take the time to define clear responsibilities and expectations for all parties. Who is in charge of ongoing maintenance? Paying taxes? Collecting rent? Sign a contract up front to avoid huge headaches and potential legal issues later.
At All Brevard Property Management, we specialize in property management services throughout Brevard County, FL. We are available to manage both residential and commercial properties on Florida’s Space Coast. Give us a call to speak with one of our full-time property managers and learn more.