Investing in a commercial property

[Enedina Barrera]

I would like to invest in a commercial property such as a complex of suites that can be rented out by proffessionals. There is a little five suite  complex that was for sale down a well known commercial street. The five suite complex has a dentist office, makeup salon, hair salon, animal grooming, and a lawyer consulting firm. Not very big at all, but busy. The owner sold it last month for about 350,000 and as you can imagine a seasoned investor bought it. How does owning something like this differ from rentals or small duplex? I would figure it would be easier than dealing with regular residential properties.

[Tanh Truong]

Owning a commercial property is definitely different from owning a residential property. Firstly, you have different types of tenants. These are tenants that are business owners, and as you mentioned professionals. In residential real estate, you are dealing with residential tenants and dealing with residential headaches. Leases are different - longer term and they outline the different responsibilities of the landlord and the tenant. Easier management, possibly, but it also depends on your systems in place. Sometimes, the improvements of the space isn't all the landlord's responsibility either.