7 Ways to Be a Good Landlord for Your Commercial Properties
Being the landlord of a commercial property is like killing two birds with a single stone. Not only do you benefit from the fixed, monthly revenue you get through rent, but you can also derive satisfaction from knowing that you’re helping others by renting out your space. As with any landlord, you probably have a list of things you’d expect from your tenants.
Similarly, your tenants might expect a couple of things from you. Being a good landlord can easily foster a healthy, friendly, and long-term relationship with your tenants. Isn’t that what all landlords want? In this post, you will discover the 7 ways to be the landlord that every commercial tenant wishes for
Do your Homework
Owning commercial properties is one thing, and renting them out is a whole different thing. That’s why you should do the groundwork before getting down to business. Let’s say that you’re planning to rent out your three-story commercial building.
Before spreading the word, study the other buildings in the area. Take stock of who is operating out of them. This will give you a good idea of the type of tenants who might respond to your rental announcement.
You can also talk to other landlords with prior experience. Since they’ve already walked in your shoes, chances are that they will be able to share some valuable pointers. The more prepared you are, the better.
A Strong Lease Can Make All the Difference
Make sure that everything you put in the lease is crystal-clear so that it leaves no room for doubt or confusion. Ensure that everything – the Parties, Personal Guarantees, Lease Terms, Renewal Policy, Rent – is agreed upon.
This is important, as a strong lease clarifies things for the tenant-right from the start and significantly reduces the chances of miscommunication in the long run. A strong lease will make things easier for your tenants, should they wish to extend their tenancy. Additionally, you can use it to put a decent negotiation window in place.
Maintenance is a Shared Responsibility
Here’s the thing. Unlike residential properties, maintenance is a shared responsibility in commercial properties. Both you and your tenants will have to work together. Let’s suppose that you have rented out your three-story commercial space to three different tenants.
While they will be responsible for maintaining the space they’re using, other aspects, such as the entrance, basement, and driveway, will fall on you. And, like a good landlord, it is your responsibility to ensure that the premises are clean and well-kept. For example, you can hire commercial cleaning services to do the job for you.
Inspect Your Properties
Commercial buildings can experience a range of problems – water seepage, flaking plaster, wiring issues, busted pipelines – the list is endless. Before renting out your commercial properties, be sure to inspect them first.
Does your property need a fresh coat of paint? Is the water supply pipeline rusty and needs to be replaced? Are there electrical and plumbing issues? Or is there a bigger problem that can potentially endanger safety?
If you spot issues in your properties, you should address them fully before renting out the property. Nothing makes tenants happier than a tip-top commercial space that meets all their needs.
Comply With All Regulations
When you rent out your commercial properties, the safety of your tenants becomes your responsibility. You should ensure that your building complies with all the fire and safety regulations by installing fire and smoke alarms and maintaining sprinklers, stairwells, and fire exits. Depending on where your building is located, you might have to follow additional safety guidelines.
Even if you rent out your commercial property in the best condition, there’s no guarantee that there won’t be any issues or problems in the future. It’s imperative for both you and your tenants to know that. While your tenants can foot the bill for minor repairs, you’ll probably need to fund most of the repairs.
Therefore, it’s always a good idea to plan ahead. Be realistic and anticipate the issues that might crop up. Communicate the same with your tenants. Set funds aside (it’s like saving up for rainy days). If an issue pops up, you should resolve it with minimal inconvenience for your tenant, especially if it’s not their fault. Every tenant appreciates a landlord who considers their needs.
Choose Your Tenants Wisely
This is very important. So, how can you ensure that you pick the right tenants? Firstly, make sure that your commercial property meets your tenant’s needs. For example, if your property is located in a remote area, it may not be ideal for businesses and offices that need to be close to the city.
You should also try to form a clear picture of your tenant’s expectations. If you find them to be unreasonable, it’ll be hard for you to meet them. At the same time, make it clear to the tenant that they need to uphold their end of the bargain, including paying their rent on time. The right tenants can make it a lot easier for you to be a good landlord.
To be a good landlord, you need to communicate effectively with your tenant. From letting them know about your expectations to informing them about your availability, clear communication will make everything run smoothly. Throw in a pinch of empathy to the mix, and you’re all set!