Basics of Property Management: Screening Potential Tenants
What You Should Know About Having Your Commercial Property Appraised
Jesse Obrien
You may own a commercial property and have been considering selling it for a while. Depending on how many years you owned the property it will have gone up in value and you might not be sure how much you should sell it for. It's also possible you would like to know the property's value for insurance purposes.
Either way, it's a good idea to hire a commercial real estate appraiser to ensure you know your property's estimated value on the real estate market. Here are some things you should know about having your commercial property appraised.
All Commercial Buildings Can Be Appraised
You might be thinking that only large commercial businesses can have their property appraised but that isn't the case. Any type of property that is deemed commercial can be assessed by a commercial real estate appraiser. This means if you own an apartment building or condo complex, small retail store, manufacturing plant, or warehouse, any of these properties can be appraised by a commercial real estate appraiser.
This helps both small and large business owners to determine the estimated value of their property if they wish to sell it now or in the future. An appraiser can and will cover all aspects of the property for its value, not just the building itself but the contents within and on the surrounding property owned by the business owner to get a complete picture of the overall worth.
It's Important To Have One
If you own a commercial property it's important to have a commercial real estate appraiser take a look at it to determine its overall value. This is true whether or not you want to sell your property or know its value for insurance purposes, tax assessments, or to value the property for inclusion in a will or probate reasons.
When you hire a commercial real estate appraiser, be honest about the reason you want the appraisal so they can keep that in mind and give you a realistic idea of what your property is worth.
An Inspection Is Part Of The Appraisal
While an appraisal isn't the same thing as a property inspection, an inspection is an important part of the appraisal process. An inspection will ensure the overall structure is sound and that no major repairs or renovations need to be completed before the property is ready for sale which can affect the property's value.
Some commercial real estate appraisers are certified to complete a building's inspection but many will bring a building inspector along with them during the appraisal to help determine the property's value.
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For the last several years, I've used a property management firm to help with my rental properties. One of the tasks that they handle for me is screening applicants who would like to move into one of my vacant units. Their expertise has helped me lower my tenant turnover and find people who want to stay with me for years. Part of the process is a tenant screening credit check. Before any further contact takes place, my manager orders credit reports from at least two agencies. That is enough to tell us if an applicant is a good financial risk. Assuming the references work out, I meet the candidate and make the final decision. If you own rental properties, let me tell you more about the benefits of having a property manager. I'm betting you'll find this type of arrangement will work for you too.