I’m sure you already know that the residential real estate market has all but dried up. Oh sure, there are residential investors out there waiting like vultures to profit off of some poor homeowner’s foreclosure misfortune but the one area of real estate investing that is hot right now is commercial real estate.

Everyday I am getting phone calls from people wanting to get a commercial mortgage and get into this hot new market. Investing in commercial real estate is quite a bit different from residential real estate investing. With commercial real estate lending the lenders are mainly interested in the property. It is less about the individual person or company that is buying or refinancing the commercial property and more about the income and condition of the commercial property.

The commercial property management can decrease verifiable expense flow in several ways. Things as simple as using low wattage light bulbs, using electric timers for lights in common areas and using motion detectors on lights in hallways are all items that will not hamper the tenant in any way, but will save a substantial amount of money. There are also the options of using regulated thermostats and reducing the hot water temperature to increase profits. These options can make the investment more profitable, but should not impact a tenant’s life enough to dissuade them from renewing their lease. In some cases, lowering the hot water temperature is actually preferred by tenants who have small children or an elderly person in their rental unit.

These are all simple, low or no cost ways of creating income from your commercial real estate. But, there are many other ways of generating income that are also low or no cost, such as adding soda machines. These are things that while they generate income also bring more advantages to the tenants. Buildings that are tenant friendly and well kept are ones that keep their rental units filled. Those buildings have tenants who feel their apartment is their home, complete with that make their lives easier.