Key Differences Between Residential & Commercial Property

Real estate investors often have to weigh the upside potential of residential and commercial properties against one another each time they dive back into the market to bring in a new asset to their portfolio. The marketplace for real estate is vibrant and fast-moving, but there remains a divide between the ways in which investors target and use commercial and residential properties in their portfolios.

Considering the differences between these different asset options within the broader real estate market is crucial for anyone thinking of getting into the property space. There are some excellent opportunities in home space, office buildings, and other commercial real estates. With this guide, learn how to leverage either type of property for the kinds of gains you are hoping to make it easy.

Residential homes can be used in a number of different ways.


Many property investors start out in the residential space, and many real estate investors remain here for the duration of their active investing timeline. Homeownership is crucial for those looking to build wealth, and the same goes for the investment in property you intend to leverage as an investment rather than a living space for you and your family.

One thing that can change how you think about any new property investment is the need to invest in renovations. The renovation space is huge in the U.S. and all around the world. With the help of a remodeling contractor that you trust, like Zintex bath planet, remodeling the bathroom in your property in an effort to attract more competition to your property as it hits the market is easy. Zintex is a professional outfit with years of experience in the bathroom renovation industry. They can help you transform a drab space into a luxurious experience that renters and new buyers alike will be struggling to gain access to.

Remodeling is a great way to infuse a property with additional wealth-generating potential, but it also improves the underlying value with remarkable consistency. Consider a remodeler that you can count on for every new project for the best in service and quality craftsmanship each and every time.

Commercial properties are all about tenant longevity.


In the commercial space, the most important factor in the relationship between tenants and landlords is the success of the tenant’s business. Property owners who’ve invested in Staten Island commercial properties want to see thriving industries move into their office buildings, warehouse space, or other commercial assets. This provides you (as the property owner) with consistent rental income and a minimized risk of losing your tenant to bankruptcy or other factors that are out of your control. Each time a tenant decides to close up shop or move into a new space as a result of downsizing or upscaling, you have to find a new renter.

This can be difficult in the commercial property space, but there are a few ways to select great units that will continuously attract new tenants. Inevitably, you’ll have to find a new renter at some point, and prioritizing the location of any new investment asset as well as the amenities that it brings to the table can help make this lapse in rental income as short as possible. Location is key for trading purposes: A rest stop McDonald’s that’s just off an easy-to-use exit will see far more traffic than one ten miles from the highway.

The same principle is true for any type of business. Understanding what kinds of businesses can benefit from a particular kind of location is a great way to judge any new investment opportunity in commercial real estate. Many investors, as a result, seek out properties that can serve in multiple functions to attract the greatest volume of prospective tenants during each change in occupancy.

With these features in mind, it’s time to get into real estate.

Written By
Carrie Anderson
Financial Analyst | Contributing Writer
Carrie Anderson

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