One of the most lucrative sources of income is running a commercial building. Other than property value appreciation, you make money through rental and related services. However, part of your profits also goes to the management of the property. When it is not duly managed and maintained, the rent that you require your tenants to pay will not be justified; remember that your tenants are not just paying you for the space; they are also paying you for the quality of the space.
Maintaining a commercial building can be quite challenging, especially in the area of budgeting. In this regard, you need to keep maintenance costs to a minimum while making sure that the building stays in great shape and that your profit margins are boosted. If you are looking for some ways to make your budget for building maintenance efficient, here are some pointers:
Consider your location
Location matters in the commercial real estate industry. And it also matters when it comes to maintenance. If you’re in downtown, expect that more people are using facilities, thus speeding up the degradation of your building. So you need to make sure that you have a regular maintenance plan for your building. It makes sense to hire a contractor from the same city, as you can expect that they will be at your doorstep pronto, compared with hiring an affordable laborer or tradesman who is located two cities away from you. Time is also a resource, so use it well.
Create a contingency plan
When creating a budget for building maintenance, you have fixed costs, such as monthly HVAC inspection or plumbing check-up. But do not just base your budget on these recurring costs. You need to anticipate bigger problems, such as a storm damaging your windows or your basements being flooded with rainwater. To make sure that you have money to deal with these unexpected issues, you need to build an emergency or contingency plan. It is also wise to check your insurance policy to see if certain damages are covered.
Long-term care = fewer maintenance expenses
It may not be directly part of your budgeting concerns, but it can directly affect maintenance expenses. When you take care of building equipment and items, they will last long. And when they last long, you will not have to spend on new equipment every two years or so. Consider your HVAC system, which may have a life cycle of a decade to 15 years. If it’s regularly maintained, it will last its maximum length of operation, which means fewer expenses on your end.
Every year is different for your commercial building. The maintenance costs that you incur year by year may be different, but you may notice a trend or pattern. Maybe six years ago, you worked with an asphalt paver for your parking lot. It happened again two years later. And then this year, you have worked with them. Using this data, you can easily deduce that your parking lot needs upkeep and maintenance every two years. That way, you can make adjustments for your budget.
Keep it in good shape
Your commercial building is an investment that you need to take good care of. It is a lucrative source of income, and to maximize it, you need to make sure that it benefits from a fair and reasonable maintenance budget.