This is a phrase I hear a lot! It is usually followed by “I’ve got great tenants and they have been there for a long time.” It is sometimes followed by “I’m leaving it to the kids eventually.”
These statements ring alarm bells for me. The reason for this is even if you don’t want to sell your property now and have no intentions to anytime soon, you DON’T know what will happen in the future. There may be a family tragedy, an illness, an unexpected business expense that may occur that forces you to sell the property you had no intentions of selling.
My question to you is “if you needed to sell your investment property or place of business right now.. TODAY.. Would they achieve the highest possible value in the current market?” If you can’t answer yes to the following questions then you need to review your property straight away:
- Have I reviewed my investment performance lately?
- Have I checked what market leasing rates are in my investment suburb?
- Are my tenants on leases?
- Have I done maintenance checks on my property?
- Are there rusted out gutters?
- Does the building need to be repainted?
- Is the plant and equipment up to date and working well?
- Is the plumbing working efficiently?
- Is the fire equipment up to date?
These are just some of the questions you need to ask yourself honestly about your investment properties and if you answered no to any of these it is time to speak with an experienced commercial real estate agent so they can assist you in positioning you for the best outcome in the future and now.
Phil Grant – Director Commercial Sales & Leasing
NAI Harcourts Pinnacle