We’ve all heard the horror stories of commercial and residential landlords. From tenants destroying property to simply not paying their rent, it’s easy to be scared away from being a rental property owner. There are, however, some tried and true methods to ensure the success of your investment.
Let’s take a look at a few common mistakes of commercial landlords and how you might be able to steer clear of potential issues.
Common Mistakes of Commercial Landlords
The following are a few of the most common mistakes of commercial landlords:
1. Negotiations
Whether you are purchasing commercial property or working on the details of a lease, understanding the negotiation process is crucial. Landlords and buyers often go into negotiations without proper representation and not having solidified their desired terms.
2. Property Management
The wrong property manager or poor management systems can be the downfall of a commercial investment. Picking the best property manager for your building is equally as important as choosing the right tenant.
3. Maintenance
Deferred maintenance leads to more significant expenses down the road. A landlord who notices an issue and immediately addresses it saves time, money, and energy in the long run.
4. Due Diligence
Due diligence is paramount when buying commercial real estate or considering a prospective tenant. Investigating each aspect of the building and tenant to ensure they are a good fit for you and your portfolio will increase profitability.
5. Leases
Any ambiguity in a lease can lead to conflict. A correctly drafted lease with black-and-white terms keeps everyone on the same page regarding rules and responsibilities.
An Agent Ally
A commercial real estate agent ally can make all the difference. Your broker should be well-versed in the above-mentioned issues and will guide you toward success.
Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.
We give out $250 gift cards for referrals that become our real estate clients.
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