On paper, a tenant-landlord relationship is mutually beneficial. The tenant needs a commercial space to rent for their business and the landlord needs an occupant. The tenant can then use the space to make an income, and the landlord can also make an income from the rental. Overall, it seems like it works out for everyone involved.
Unfortunately, the reality is, it’s more complex than this. There are other factors in play, such as the economy and competitors being located nearby. Poor maintenance or communication on the landlord’s part can hurt the landlord-tenant relationship. If a tenant makes late payments or damages the property, that can also damage the relationship. There are various factors that can cause what seems to be gold on paper to be damaged, sometimes beyond repair.
So, how do you prevent potential problems, and what do you do when problems arise?
There are a few things you can do as a commercial landlord to help prevent potential problems. One of the things that’s absolutely necessary is to do a thorough screening of potential tenants. You need to be a little picky when it comes to renting your space. A tenant that passes a thorough screening will be more likely to pay rent on time and not damage your property.
Another thing you need to do is make sure that everything is clearly spelled out in the lease agreements. Everything of importance needs to be there, including how certain situations will be handled. This is a good place to mention what rules need to be followed and what would cause an eviction. If tenants understand that certain actions (such as not paying rent on time) can cause an eviction, they’ll be more inclined to follow those established regulations.
Another thing you can do to be proactive as a landlord is to maintain the property. You need to be reliable in responding to problems and even take preventative maintenance steps to keep your commercial tenants happy. You should also familiarize yourself with the tenant and what their business is about. This is especially true if you’re renting out a strip mall. You want to ensure you don’t rent out other spaces that could be considered competitors. This could complicate your relationship with the tenant and cause problems.
It’s best to try and keep a healthy and professional relationship with your tenant. If a problem does arise, try to handle it gracefully. See if there are ways to solve the issue before taking the tenant to court or filing an eviction notice (unless this is absolutely necessary). Also, keep a record of any written interactions you’ve had, so there’s proof if a court intervention is required.
Hopefully, you don’t have deal with going to court or eviction notices, but unfortunately, it happens sometimes. To help make your job easier, contact us at PMI. We can help you find the right tenants and make sure your lease agreements are up to par. Contact us to find out what else we can do for you: https://www.sugarhillpropertymanagementinc.com/
