With an average household income of $118,830, and a growing population of more than 96,000 residents, Mission Viejo is an attractive setting for a new motel or hotel business. These large income properties are a good asset to pad any investment portfolio with, but they can be quite costly, especially in Southern California. To get your money’s worth, and protect yourself from risks involved with owning commercial property of this kind, be sure to do your research before signing a contract.
Before you buy, you need to test the market. In Mission Viejo, you can achieve this by speaking with local business owners within the hospitality industry, as well as lookup statistics on average hotel earnings in Southern California over the past few years. A financial consultant and commercial realtor can offer insights into this investment before you make it, taking much of the guesswork out of the purchase.
In place of buying, some individuals and businesses choose to lease large commercial property to bring in an income. Some investors like the way that a hotel looks in a portfolio, but have absolutely zero interest in running one, which is an advantage for those involved in the hospitality industry, seeking a place to set up shop.
Mission Viejo Hotel & Motel Property for Sale & Lease
Leasing or buying hotel and motel properties in Mission Viejo is in high demand. With its proximity to Los Angeles, Santa Ana, Anaheim, and Riverside, the city sees plenty of tourists and travellers to keep hotels prosperous. It really comes down to your reasons for entering the hospitality industry as to whether leasing or buying will be more beneficial for you. Your current financial status, future business plans, and intent to be part of the business, or simply own it, will all play a role in making this big decision.
Hotels are a long-term commitment; it can take years for an investment of this magnitude to see a payoff in resale value. These aren’t generally the type of buildings you buy, flip and resell fast. Their value increases over time based on the market, the prosperity of the location, and other factors. Lessees also have to be in it for the long haul, because these commercial property agreements tend to have lengthy terms. This is beneficial for both parties in some ways, and a drawback in others.
Mission Viejo Hotel & Motel Property for Sale
Before buying, you should decide whether you’re planning to purchase an active business, or an empty building with the potential to blossom into a business once again. The cost of the property will be affected by its status, and included features, equipment, furniture, and location. Buying an operational hotel or motel ultimately means that you’ll also be buying the business within it. Some buyers change management, branding, and even furnishings before reopening, while others choose to retain the building as is, and simply reap the financial benefits being generated inside.
There are always risks to real estate investments, even in Mission Viejo, where the hospitality industry has seen growth over the past few years. Buying puts you in a position of power when it’s time to make big decisions on the property, but it also leaves you in the place where fingers get pointed if the business fails, property is damaged, or there are accidents on site.
If you buy and then choose to lease to a third party, be sure to include all the appropriate clauses to put onus for insurance on the new property manager. Not being around to witness accidents and damage shouldn’t leave you responsible for them, but if you haven’t specified this in your contract, you’ll be the first person they will point to when trouble arises. Protecting yourself is an important part of owning commercial property.
Mission Viejo Hotel & Motel Property for Lease
Leasing in Mission Viejo gives you plenty of opportunity for prime commercial real estate. Property is rented per square foot per year, with varying lease terms to choose from. Leasing is a little less intimidating than buying, but you should still need to put in some solid research, and talk to a professional about your options. Having a commercial realtor and a lawyer to walk you through potential buildings and contracts will keep you from choosing the first property you set your sights on.
Leasing opens doors to future buying opportunities, and some owners will even consider a lease to buy option, although this isn’t always endorsed by financial advisors. You will have to make your own choices about what the future holds for you in Mission Viejo.
Individuals buying or leasing commercial real estate in Mission Viejo can access public information on zoning and permits through the official city website. Use the services of a professional commercial realtor for best results, and don’t be afraid to ask questions, and haggle on the price.