Regardless of whether you are a regular real estate investor, an owner who is thinking of leasing out his property as a commercial unit or an entrepreneur confused between renting a commercial space or using a residential space as his office, you must contemplate the benefits a commercial property in Noida has over a residential property.
1) Ease, Consistency and collateral value – commercial properties owing to their location (proximity to malls, markets and shopping centers) are probably going to bring you entrepreneurs and businessmen who might need to lease out the space for a longer period of time, guaranteeing you the best and regular returns for longer durations. This improves the permanency of your investment and likewise decreases potential losses because of in-between, short-term vacancy. This is profitable for both landlord and tenant alike, wherein the tenants get to operate his business in a space for a longer period and the landlord is getting fixed rental income for the same long duration. Interestingly, this is not the same with residential properties – where tenants rent place for a short duration with 11-month lease renewal. This is a serious concern for both landlord and tenant – longer vacancy period, as people move out owing to job change and other reasons and annual renewals means several renegotiations, which is both time consuming and frustrating.
2) Negotiating Responsibilities – In residential properties, the critical obligations of maintenance, repairs and renovations rests with the landlords and if the landlord fails to do his share, the tenant might vacate the property and move out, causing rental loss to the landlord. However, that is not the case with commercial properties, the business owners or companies renting the commercial spaces ask for and appreciate the freedom to make renovations as per their business needs, without causing headaches and bringing financial burden on the owner.
3) Less chances of default - While this may not be a sweeping standard, yet companies (be it small, medium or large) are more averse to default in paying monthly rent, in contrast to residential tenants with constrained assets. Companies, because of their business reputes, stability and market presence agree to pay rental money upfront for not months but years, which means you will get a huge fixed-sum deposit in a single go.
4) No laws governing the rents – While the residential rents have an upper limit, which means after certain limit the landlord cannot increase the rent, there is no such thing for commercial property. Once the business is established at a particular space, it is not good to change the location, thus the tenants of commercial space would never hesitate to pay increased rentals just to keep the location for their business fixed for years to come.
5) Grading and Returns – Let’s talk first about grading, ever known about a residential property categorized into grades based on quality constraint? Yes, no grading system is there for residential spaces, however the commercial spaces are categorized into A, B and C categories-
So, if you find the above information appealing and now you want to invest your hard-earned money into a project that offers you-
If you have any questions, the sales team dealing our commercial property in Noida is happy to help you determine your options.
1) Ease, Consistency and collateral value – commercial properties owing to their location (proximity to malls, markets and shopping centers) are probably going to bring you entrepreneurs and businessmen who might need to lease out the space for a longer period of time, guaranteeing you the best and regular returns for longer durations. This improves the permanency of your investment and likewise decreases potential losses because of in-between, short-term vacancy. This is profitable for both landlord and tenant alike, wherein the tenants get to operate his business in a space for a longer period and the landlord is getting fixed rental income for the same long duration. Interestingly, this is not the same with residential properties – where tenants rent place for a short duration with 11-month lease renewal. This is a serious concern for both landlord and tenant – longer vacancy period, as people move out owing to job change and other reasons and annual renewals means several renegotiations, which is both time consuming and frustrating.
2) Negotiating Responsibilities – In residential properties, the critical obligations of maintenance, repairs and renovations rests with the landlords and if the landlord fails to do his share, the tenant might vacate the property and move out, causing rental loss to the landlord. However, that is not the case with commercial properties, the business owners or companies renting the commercial spaces ask for and appreciate the freedom to make renovations as per their business needs, without causing headaches and bringing financial burden on the owner.
3) Less chances of default - While this may not be a sweeping standard, yet companies (be it small, medium or large) are more averse to default in paying monthly rent, in contrast to residential tenants with constrained assets. Companies, because of their business reputes, stability and market presence agree to pay rental money upfront for not months but years, which means you will get a huge fixed-sum deposit in a single go.
4) No laws governing the rents – While the residential rents have an upper limit, which means after certain limit the landlord cannot increase the rent, there is no such thing for commercial property. Once the business is established at a particular space, it is not good to change the location, thus the tenants of commercial space would never hesitate to pay increased rentals just to keep the location for their business fixed for years to come.
5) Grading and Returns – Let’s talk first about grading, ever known about a residential property categorized into grades based on quality constraint? Yes, no grading system is there for residential spaces, however the commercial spaces are categorized into A, B and C categories-
- Class A – Newer commercial spaces, business parks with latest amenities and aesthetics.
- Class B – Average retail or office spaces with structures that might be old but can earn you above average rents.
- Class C – Not much should be expected from class C properties, as they are cheap spaces and are least desirable.
So, if you find the above information appealing and now you want to invest your hard-earned money into a project that offers you-
- Grade A commercial property
- Better returns
- Good tenants
- Peace of mind
If you have any questions, the sales team dealing our commercial property in Noida is happy to help you determine your options.
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