Top tips for managing tenants
It doesn’t matter if you have the best commercial property on the block – the best location, the best facilities, the best fit-out – for financial success, it’s the tenants that count. Unreliable tenants can cause more than just headaches; they can threaten your entire investment.
Here are our top tips for managing your commercial property tenants:
Prevention is always better than a cure.The two best ways to prevent problems down the track is through careful selection of tenants and by paying very careful attention to the lease. Getting the right fit is just as important for you as it is for your tenant, and if the fit is right then you are more likely to enjoy a longer lease period. When it comes to disagreements, the vast majority could have been sorted with a watertight lease. So, take the time to it right and make sure it protects your interests, before you both sign.
Pay attention.Even if you are using a property management company, don’t take your eye off the ball. If payments are late, you should know. If the lease terms include inspections, do them. Keep an eye on your property – look for damage, irregularities in your tenant’s business – for example, reduced opening hours could be a sign of financial trouble.
Keep up a dialogue.Make it your business to know your tenant. How do they use the space? What are their plans for the future? How is their business performing? The key to keeping a commercial property investment profitable is keeping it tenanted. The more you know about your tenant, the easier it will be to anticipate their needs and be prepared.
Be proactive.If rent is coming in late, deal with it quickly. Likewise if the tenant has an issue, deal with that quickly too. This way, you are less likely to find yourself in a position where your tenant can lay a complaint about you.
Finally, if anything crops up that you’re unsure about, get professional advice. Accountants, lawyers, property managers… they all deal with this stuff on a daily basis.