You’ve bought a commercial property in Pune. Kudos to your decision! But what next? Commercial property is practically meaningless if it does not yield the desired Return on Investment (ROI). So, how do you optimize ROI on your commercial space in Pune? These five straightforward, yet vital tips can help.
5 Tips to Optimize ROI from Your New Commercial Space in Pune
While the first step in optimizing the ROI of the commercial space is to choose a prudent location, these five post-purchase tips, or you call them strategies, can help you maximize the returns on your commercial property. Let’s see how you do that and earn a sustainable income from your commercial space.
- Minimize Vacancy
A vacant office or commercial space is like a liability. It sits idle and fails to serve its fundamental purpose for the owner, which is wealth generation. Accordingly, you cannot keep the property vacant for a long time. You must market it extensively and list it with real estate brokers. It will help people searching for commercial properties in Pune, especially those similar to yours, find you easily and quickly. Thus, the key is to reduce vacancy as much as possible and keep it perpetually occupied to increase its commercial productivity.
- Increase the Rent
This one is a no-brainer. And, as the owner of a commercial property, you don’t need an expert to tell you this one. Do not keep the rent as it is for years. Remember, you too would have inflation to live with and combat. Hence, regularly increase the rent amount to keep up with the property’s maintenance aspect, augment the monthly return you get from the property and benefit from the property’s appreciation rate.
- Curb Overheads
This might not always be possible. However, try to identify opportunities, where you can enhance the property’s operations. Some of the ways to do it include streamlining property rent collection, contractor management, introducing smart lighting to save electricity costs. Additionally, you may ask the tenant to use other pre-existing elements such as furniture, fixtures, etc., wisely and responsibly to avoid damage and invite unusual maintenance or repairs.
- Enhance the Property
This strategy calls for an investment. However, it is essential from the viewpoint of aligning the property with the ever-evolving needs of tenants and maintaining its competence. Make aesthetic changes to the property such as changing its flooring, improving its interiors, repainting its walls, smartening it, etc., to ensure it appears attractive and renewed. A renovated space is more likely to attract tenants, despite a higher rent attached to it.
- Increase Income Streams
While the commercial space itself is an income source, you can identify and create multiple income streams within it and optimize your returns. For instance, you can charge rent for additional space such as the allotted parking, penalize the tenant for late fees, etc. These are only a couple of examples, though. You may identify more opportunities, appropriate and feasible in your context, without losing the existing tenant or a prospect.
Optimize the ROI of Your Commercial Space in Pune with Kohinoor World Tower (KWT)
If you’ve been looking to buy a commercial office in Pune, investing in KWT can prove a strategically advantageous decision. The under-construction project that features several multi-sized commercial spaces is an excellent opportunity for commercial investors to enjoy high returns on investment and benefit from the business potential of Pimpri Chinchwad. Besides, KWT is easily accessible, proximal to a metro situation, and strategically located between Pimpri and Chinchwad. To know more, call +91-020-6764 1818.