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New Building Nightmares: Six Expenses You Should be Prepared For

New Building Nightmares: Six Expenses You Should be Prepared For
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    New buildings have expenses that are far more expansive than the initial mortgage might have you anticipate.

    It might be just the extra cost of small office supplies to huge add-ons you hadn't realized came with the property.


Here are six expenses you should be prepared for when you take on a new building for your company.


Not only does insurance help to protect the investment you make in your new building, it may be legally required by some municipalities. Make sure you always consider this ongoing cost along with any mortgage payments you may be making.

Interior Design

Just because you have a building built, does not mean that it can be used for anything. You need furniture and interior design in order to make a house into a home, or piece of real estate into an office. This is an upfront fixed cost that must be considered before your real estate will begin to generate any income for you.


The second you stop building on your real estate, your real estate begins to depreciate. In order to keep from creating a large out-of-pocket expense for yourself when something goes completely haywire, you should budget in a monthly maintenance for your new building. Companies like Lowry Services: Electric, Plumbing, Heating & Cooling might be able to perform preventative as well as emergency work to help keep your place in perfect condition.

Pest Control

Just because you feel as though you have dominion over the area because you are building does not mean that the previous residents of your real estate necessarily agree with your presence. In order to keep out all critters that go bump in the night, you should factor in pest control costs so your building is not overrun by insects or rodents. This is especially important during the first stages of your building process when things are in upheaval and pests more prone to move around.

Zoning Licenses

Depending on the municipality, you may have to pay a zoning license fee in order to stay in compliance. Make sure you understand the rules of the municipality as it relates to the industry your business is in. If you are in a residential area, you may also have to pay HOA fees depending on the neighborhood you are in.

Unexpected Occurrences

Owning a piece of real estate, especially a new piece of real estate, virtually ensures you will have some kinds of unexpected expenses. It could be expected in the contract, or come completely out of the blue. Make sure you have a kitty prepared for such an occurrence.

Keep the above expenses in mind so you understand the true cost of a new building rather than just the initial fees. This will keep you from under-capitalizing your efforts, and increase your chances of success exponentially.



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