Commercial real estate assets come in many different forms, including: medical centers, malls, hotels, farmland, garages, and apartment complexes. Many believe that apartment buildings or multifamily housing is the easiest to buy and manage when investing in real estate. This can be true, but that doesn’t mean it’s a no-brainer. Landlords and property management companies continually have to update leases and rental policies, and that fact is unlikely to change any time soon. Here a few changes would-be landlords should be aware of:
Absenteeism May Be Punishable By A Fine
It may be tempting to purchase the most lucrative commercial real estate listings, regardless of their proximity. More often than not, that’s not the wisest move. Whenever possible, it is smart to make real estate investments that are nearby, and that you’ll be able to check on periodically, or at least as needed. New Jersey and some other states are passing new legislation, holding landlords and property owners accountable for inappropriate tenant behavior (excessive noise, disruptive partying, etc.). Many landlords are unable to truly enforce this behavior from several hours — or sometimes even states — away. If far away properties are truly invaluable to you and your investments, consider hiring a local property manager or property management company.
New Things To Think About
As state laws change, landlords and property owners often have more things to think about. For example, proposed legislation may give landlord’s the final say about growing or smoking medical marijuana in rental units, even if it’s 100% legal. The House will consider the bill later this week. The potential law does not apply to legal marijuana edibles or medical marijuana edibles.
Commercial real estate, and housing in particular, can be a lucrative investment. It is not always easy to manage, however. Potential landlords should consider ever-changing laws and policies, including new laws holding landlords accountable for party houses and for making final decisions about legal and medical marijuana use.