What are the pros and cons of investing in commercial properties versus residential ones?

Investing in commercial properties has several advantages, including higher rental yields, longer lease terms, and a diversified tenant base. Commercial properties, such as office buildings or retail spaces, often provide more stable income streams as leases tend to last several years, and tenants may be responsible for property maintenance. However, commercial properties also come with higher upfront costs, greater market risk, and management complexities, as vacancy rates can be more volatile. In contrast, residential properties are typically easier to finance, have a larger pool of potential buyers, and involve less maintenance responsibility. However, residential rental yields tend to be lower, and tenant turnover can be higher, leading to more frequent vacancies and maintenance costs. Each type of property has its pros and cons depending on an investor’s financial goals and expertise.