When helping clients decide between residential and commercial multi-unit properties in Maine, we encourage them to ask the right questions to find the best fit for their portfolio. Here's what we suggest considering to make informed decisions.
For residential multi-unit properties (1 to 4 units, 25% down), we advise clients to inquire about the location and neighborhood. It's important to understand the community vibe, safety, and proximity to schools, parks, and public transportation. Clients should also ask about the property's condition, including any recent renovations or repairs, and the age of major systems like heating and cooling. Understanding the lease terms, such as the length of the lease, renewal options, and any potential rent increases, is crucial. We stress the importance of knowing about the landlord or property management's responsiveness to maintenance requests and their reputation among current tenants. Finally, asking about amenities and additional features like parking, laundry facilities, and pet policies is essential.
For commercial multi-unit properties (4+ units, 30% down), we highlight the importance of foot traffic, local business competition, and accessibility for customers and employees. Clients should understand the condition of the property and any included utilities. It's important to ask about the lease terms, including any hidden costs like maintenance fees, property taxes, and insurance requirements. Knowing about restrictions on modifications and whether the landlord offers support for business-specific needs is also vital. Additionally, clients should inquire about parking for customers, signage opportunities, and any included services like security.
Determining what property works best for your portfolio involves asking these essential questions. Reach out to us, and we can discuss your options in more detail!
.jpg)
