Dr Dolf de Roos on whether commercial or residential real estate is better
1.When you have a residential property you have to pay for insurances property taxes and maintenance, with a commercial property generally the commercial tenant pays these costs.
2.Your tenants pay the outgoings.
3.Commercial tenants generally do business at your premises therefore they have a vested interest in keeping your property looking good.
4. Residential tenants are normally one year lease sometimes 2 or 3 years, Commercial tenants generally want a longer lease many leases are 20 or 25 years, generally there are at least 5 or ten year leases.
5. Residential premises if a tenant has a residential property and a commercial property generally they will pay the commercial property first as there are possible fines in some commercial leases regarding late payments. Also in many countries residential tenants are better protected. In some states in America you have to wait till arrears are at least three months in arrears before even being able to even send a letter of complaint.
6.Tenants generally pay the rent on time much more than in residential property.
