Property Management Blog

Once you have decided to pursue rental real estate investment, you need to choose between commercial or residential rental property management Virginia Beach VA. Understanding the difference between two is important to predict the success of the venture. There are different kinds of properties: homes four units or lesser are considered residential in nature; while an office building, retail strips, industrial buildings etc are considered commercial. Additionally; warehouses, assisted living facilities and restaurants, also fall in this category. Irrespective of the type of property you choose, it is generally advised choosing one close to your own home. This way, the property is within driving distance. It is also easier to manage single family homes than commercial properties, unless of course you plan to enlist the services of a professional property manager. But, even if you opt for the help of such an expert, you always need to be available to respond to his concerns and also supervise the operation of the property yourself. Considering your finances is also necessary: residential properties can be purchased with none or little down payment but it is harder to buy commercial properties since more down cash may be needed. In fact; some commercial loans are known to have nearly 30 percent down payment. Finally, you must also consider the lease periods: residential leases are typically one year long while commercial tenants may sign five year lease agreements. All these factors can help investors decide between residential and commercial properties.