Check out 6 advantages of regularizing a commercial property
Owning a commercial property requires certain precautions, but it can be extremely advantageous financially. It can be a source of income through its own trade or through leasing to third parties. Therefore, making sure that the situation of the property is in accordance with the law is essential to ensure that your property remains a good deal. But what are the advantages of regularizing a commercial property?
To help you make that decision once and for all, we made this post with 6 benefits that regularization of the property offer to the owner. Want to know more? Check out!
1. Increase the value of the property
A commercial property needs to be regularized so that its activities can be freely exercised, so properties that are up to date end up being valued, both in sales and in leasing. This goes for rooms as well as houses or commercial land.
If you are a commercial property owner, be aware that regularization considerably increases the cost for potential buyers or renters.
This is because the company that will occupy the property does not have to worry about inspections or fines, that is, it pays for tranquility and legalized activity.
A commercial room for sale, if regularized, can cost much more than if it were irregular with the authorities. In other words: the same property yields much less.
Likewise, an unregulated property means that tenants or buyers are at risk or need to take the necessary steps, and it is necessary to lower the price to get interested parties.
2. Grants business license
Any commercial activity needs a license or permit to operate. For the company to obtain this release, it is necessary that technicians and inspection professionals visit the property and evaluate the possibility of providing this approval for commercial activities.
As the inspection and analysis are carried out on the property itself, it must be regularized as commercial property in order to have its operation released. There are no ways for the city hall and other agencies to grant the license if this step has not been completed.
The license to operate a company transmits tranquility and credibility to its consumers, who are sure that they are dealing with a serious company and that follows the requirements of the law.
3. Avoid charging fines
All companies, even the smallest ones, are subject to inspection. That is, if you do not have your commercial property regularized, you may be surprised with fines and even a requirement to seal the trade until the situation is resolved.
A company without registration for the performance of its activities and without a license or permit issued is at serious risk of being notified. This can happen through routine inspections and even complaints from competing companies.
Fines are unexpected expenses that can blow your budget, making your whole planning go up in the air. The good news is that they can be avoided with regular operation, so be sure that you will not be fined and work smoothly.
In addition to the fines, working in the irregularity can cause you to be sued, which brings a lot of headache and even more losses.
4. Provides property insurance benefits
A properly regulated commercial property usually receives several advantages in insurance. The companies offer differentiated packages, facilities and special guarantees for those who are entrepreneurs and have a regular business.
As insurance is necessary to guarantee your assets and avoid being surprised by invasions, fires and other problems, this is also a great advantage.
After regularizing your property, consult with property insurance brokers and check out the advantages offered to those who own rooms and commercial houses.
Benefits can include 24-hour surveillance, technical assistance, facility maintenance and even emergency services. However, this only happens if the property is in accordance with the law.
The value of insurance for commercial property may also be lower, that is, there are only advantages for the owner.
5. Provides the sale through bank financing
Commercial property is already more liquid than residential ones. This ease of sale is even more evident when interested buyers can purchase the property through bank financing.
In this case, the buyer must go to the chosen bank branch and request a financing simulation. This will only be approved through some checks, among which are the documents for regularization of the commercial property.
If your property is not up to date, you may be forced to reduce the value and thereby lose money. This is just one more reason why you see regularization as an investment, not an expense.
Pending documents and payments are able to scare away the most interested buyers, so even if you don’t think about reselling, consider that this possibility exists. Even if it is in the distant future.
6. Enables the use of the property as a financing guarantee
If you want to use your commercial property as a guarantee of financing, it is advisable to go after its regularization.
In addition to being used as part of payment for a new property, it can also facilitate the granting of bank credits and loans.
It is very common for financial institutions to require commercial real estate as a guarantee that the owner can afford the costs of financing or borrowing. Regularization gives you that confidence and increases your chances of talking to your manager.
The regularization of the property allows you to breathe easy when the bank requires the documentation of the property. And tranquility is priceless, isn’t it?
The regularization of the property, although it can be costly and laborious, brings numerous advantages for the owner. So, if you want to search for properties for sale or to avoid inconvenience, make a change now.
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