More and more people are buying investment properties as a source of rental income. For those who have the money to invest (rather than using money mutual investments) or those who can get their hands on foreclosures and other deals, becoming a landlord is a great option for creating a somewhat passive income. Investment properties are not 100% passive income. It often takes some work to get a property ready for tenants, and then there are regular maintenance and repair tasks to be concerned with; however, once a property is ready for occupancy and you get a few good tenants paying rent on a regular basis, being a landlord creates a fairly easy source of income.
While residential properties are certainly a popular choice for those looking to get into the landlord business, commercial properties are also a great option. Commercial properties also have more advantages. With residential properties, you typically have one or a few renters, depending on the type of building and number of units you own. While the income can be good, you will still run into tenants who either have trouble paying their rent or who damage your property or cause other problems. These issues come with the territory and this does not mean you should not consider residential properties. It simply means you have to be aware and cautious. While the same issues can crop up with commercial properties, you are more likely to gain multiple responsible tenants, especially if the property is utilized for business and office space. Multiple tenants paying a reasonable amount of rent on time gives you a great source of income right from the start.
Commercial Property Types
Depending on your interest, the amount you have to invest, and the number of properties you care to own, you have a number of options for commercial property. Diversify your properties might also give you an advantage in the amount of income you can make, the type of tenants you rent to, and the future prospects you can look forward to. The options are nearly endless. You can invest in commercial real estate properties of all types, including office space, retail space, warehouses, and specialty properties (medical, auto repair, etc.). Of course, there is also the option to invest in entire buildings/complexes, which can be utilized for single or multiple purposes.
Commercial Real Estate Investing is a fun and exciting way to create great income, providing you with the added benefits of owning additional assets and potential tax deductions as well.
Contributed by Marilee Moss. Ms. Moss is a retired financial planner who provides information and advice on money matters for personal finance sites and blogs and contributes to a number of twitter accounts.