Owning Commercial Rental Property can bring in tens of thousands of dollars a month. However, common mistakes can end up costing Commercial Rental property landlords even more money if they are not careful and diligent. Here are top tips to avoid costly mistakes if you’re a commercial rental property landlord our manager
Know your tenants and their businesses. It is important for owners and property managers of any rental property to properly screen potential tenants. Getting credit reports and financial information is one essential aspect in the screening process. However, with commercial rental property landlords and property managers should go the extra step and research whether potential commercial tenant’s businesses are viable and will therefore be able to continue to pay rent throughout the length of the lease. For example, it may not be a good idea to rent your commercial property storefront to a new candy store when there are three such store within the same 2 block area. It is unlikely that this store would be viable and the business could close costing you thousands in potential rent.
Have an airtight lease. Commercial leases need to be prepared by a legal expert in order to protect both the tenants and the landlord. A commercial renter’s lease needs to include a description of the sole permitted use of the property (i.e. fast food restaurant), a detailed limitations to the use (i.e. limitations on number or employees, delivery hours etc.), a list of prohibited uses and should list the requirements that tenants will need to perform such as certain obligations like cleaning.
Utilize the best commercial property management software. Often commercial rental property owners and property managers use outdated property management systems to manage their commercial properties. When a single tenant may pay tens of thousands of dollars of rent a month and repairs to a single property could be in the thousands you need a commercial property management system that will save you time and keep you organized. RISSOFT software for property management has special commercial property management features including an Escalation program that will help calculation increases in taxes, consumer price indexes and common area maintenance charges. It also includes a credit billing analysis report that will help you track and calculate remaining portion of tenant build-out allowances. Contact RISSOFT Realty Information Systems today to find out how you efficiently manage your commercial property with their software.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.