Published On: Fri, Nov 13th, 2015

The Most Common Problems You’ll Face Owning Commercial Property

Owning, investing and developing property can be a wonderful source of a brand new income for anyone. But, we do think that people are underestimating how easy it is to find success in this type of investment. They forget about all the issues and problems that come with owning property. There are lots of different kinds of property investment. But, they all come with built-in problems that you will have to deal with as the owner. Let’s look at a few right here.

New Home

Weather Issues

You may have bought property to turn into a recreational business. For instance, if you found a good stretch of land at a good price you might have taken out a loan to set up a golf course. This could be a great business that you could run and make a decent amount of profit. Assuming there is little competition in the area where you are setting up. But, it’s not quite as simple as just cutting the grass, setting up the holes and buying the equipment. You need to think about weather conditions. A heavy rain season is going to make your golf course unusable. If you’re in the UK, you’ll know the rain season can be all year around! Golf course drainage from Hydraway will solve this issue for you, but it’s not just this type of property investment. Any type of property can be affected by the weather, and if you own it, you’ll need to know how to deal.

You might rent out a couple of apartments that you own. If they are on the ground floor at the bottom of a steep slope, they could be at risk of flooding. As a landlord, it will be your responsibility to fix the issue and cover any damage that occurs. There are two things to think about when considering this. The first is the location when you first buy a property. It might be a low price but is that because of bad weather issues. The second thing to think about is unforeseen damage. If you’re a landlord, you need to make sure you have some extra money in the bank to pay for these problems.

Security

If you own a property that you make money off you will need to think about security. If we think about the golf course, you may think you won’t need a lot or any security. But think about that for a moment. A golf course is a massive expanse of land. Anyone could wander on and off it at any time. Without security, there is nothing stopping them. Obviously there isn’t much to steal but trespassers could disrupt games and give your business a bad reputation. That’s why you should hire some staff to man the property. If you own an office, the situation is slightly more complex. There will be things worth stealing, and that’s why you’ll need everything from CCTV to night guards.

Selling It On

The last problem you’ll face is selling a property on. Selling a property on that has an expensive upkeep can be a nightmare. Particularly if the market has come to a grinding halt. But you just have to be patient and remember that the market always turns around.

If you think you can handle all these issues, investing in property might still be the right decision for you.