Purchasing commercial buildings for a reliable source of income has consistently ranked as one of the best choices in investing; at Roongta Developers we’re learning many Investors excitedly come to understand how their financial success is going to come from leasing small sections of commercial space as well as how/where they can get started with this type of commercial investment. If you would like more ideas of ways to earn monthly income through commercial real estate, keep reading—below are just five common ways to generate a steady monthly pay cheque (assuming that you have never invested in real estate before).
1. Renting Out Office Spaces
Leasing office space out of a commercial building can be an easy strategy for generating consistent income from commercial properties. Many businesses (both new and old) need somewhere to do business; You might develop office space to lease out. Let’s say you have developed an office building that has 10 separate offices in a large metropolitan area that has heavy foot traffic; if you leased out all 10 of those offices, you would have 10 streams of monthly income from your 10 offices. In addition, since most businesses will sign a lease for 12–36 months, you can easily estimate your future cash flow once you start creating your 10 streams.
2. Leasing Retail Shops
Retail spaces are another excellent source of monthly revenue. Think of a commercial property in a shopping complex or a busy street. You can rent shops to stores, cafes, or boutique outlets. For instance, a local clothing brand might sign a one-year lease, paying you rent every month. Retail leases often include agreements where the tenant takes care of utility bills and maintenance, making it an easy way to earn without getting involved in day-to-day operations.
3. Renting Warehouses or Storage Units
Retail stores are also considered a great method of generating monthly income for you as the landlord. Think about retail stores located within shopping centers or busy city streets. You could rent this space to various retailers such as stores, coffee shops, and boutiques. For example, a local clothing retailer would likely sign a 12-month lease to rent one of your stores and pay you monthly rent payments throughout the course of their lease.
Retail leases typically have a provision where the tenant pays for the utilities and performs the daily maintenance; therefore, landlords can generate income without having to manage the day-to-day operations.
4. Offering Co-Working Spaces
Due to the increase in the number of e-commerce retailers and small businesses needing to find storage space, storage units have become very popular as well. If your commercial property has a warehouse that could be used for storage or if it could be converted into storage units, you can rent out the space to businesses needing somewhere to store inventory.
For example, you could rent that space to an e-commerce retailer who wishes to use your warehouse as a place to store their products. They will give you rental payments every month and you will benefit from having a continued source of income from your property. This strategy is especially attractive if your property is located in an area that is close to transportation and manufacturing areas.
5. Renting Out for Short-Term Commercial Events
Have you ever considered making money off of your commercial real estate by renting your property out as a short-term rental? You have the opportunity to do this with your conference rooms, event spaces, and other areas in your facility. For example, an entrepreneur could rent your space to host a launch party for their new product or to hold a workshop on a weekend. Depending on how you decide to charge for the rental (either per day or event), you could earn more than you would for one month’s worth of rent, especially if you have a high demand for your space. You can find many different ways to earn money from your commercial property by using this type of rental strategy.
Conclusion
Many different approaches can produce consistent monthly revenue via commercial property investments. Examples of traditional types of commercial properties include office and retail store leases; more contemporary options include shared working space types of leases like coworking offices and event rentals. Each of these methods has individual pros & cons, as well as their ability to work together to create maximum return on investment with a diversity and robust source of income.
At Roongta Developers, we have built a reputation for helping new and established investors find quality commercial properties that will provide long term capital appreciation as well as monthly cash flow. Investing in commercial property via accredited developers is an excellent starting point for building your wealth and achieving stability over the long term. Check out current listings on our way to creating financial independence through investing in commercial real estate.
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