Commercial real estate is one of the fastest-growing investment options in popularity. Like other real estate investing, commercial real estate comes in all shapes and sizes, each with a unique blend of expectations, maintenance needs, and potential problems. As the owner and landlord, you must understand what factors – like the different geographic areas, potential traffic, and building layout – provide to potential tenants. The tenants are how you make money on the investment. One of the hardest things about commercial property ownership is finding and keeping good tenants while getting the most value from your investment. You must learn how to manage your tenants like a pro to make the most of your investment. Here are the four most important areas to focus on to achieve that.
As a landlord, you have responsibilities to your property and the tenants on your property. The most important of these is screening potential new tenants. It’s not only about helping make sure that you have a consistent income stream but is an essential responsibility towards the other tenants on your property. If you’re not adequately screening new tenants, you’re jeopardizing your existing tenants. You are also responsible for keeping your property safe and secure, and up to code. If there are any hazards on your property, you must disclose this to your tenants.
Maintaining The Property
Maintaining the property is essential to your obligations, and we’re highlighting it twice. Maintenance goes beyond fixing leaking sinks, however. It also means ensuring the parking lot is plowed in winter, and the sidewalks are safe for travel. It means replacing the stairwell light bulbs, even if they never see much use. You should be doing periodic inspections and performing maintenance on your property year-round to stay on top of it all.
While record keeping is undoubtedly one of the more tedious parts of the job, having a complete and detailed “paper trail” is vital as a landlord. There are several pieces of documentation that you must always keep on hand. Proof of insurance shows that your property is insured against damage or accident. Rental applications and leases for each tenant should also be on hand in case any questions arise. Finally, your rental agreement should outline when and how rent is collected, and you should have a clear, documented history of payments that you can refer to as needed. When leases end, you must have most of this information readily handy to decide whether you want to renew or terminate the agreement.
Clear And Consistent Communication
Finally, transparent and open communication is the most important thing to remember when handling your tenants. You need to make sure that you are keeping the tenants apprised of ongoing issues or improvements that are taking place, and it is good practice to keep them up to date on new tenants joining the property or old tenants leaving. If your tenants reach out to you, get back to them on time and courteously.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, development, and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook, Twitter, and Pinterest.