Top 8 Commercial Property Landlord Mistakes that Can Tank Your Leasing Efforts
Posted: April 19, 2018 at 12:00 AM by Anna Jotham
As landlord of a commercial property, generating income by filling your space with long-term tenants is an ultimate priority. But far too many landlords make major mistakes along the way, which can keep them from achieving their goal. Knowing is half the battle, so here are the top commercial landlord errors that can cause leasing efforts to fall short or fail.
- Not making the proper disclosures.
As a commercial landlord, you may feel like you’re exempt from the burden of disclosure that residential landlords make. That’s not the case, according to larsonsolecki.com. Be sure to study up on local laws and ordinances, and know what you are required to disclose.
- Disregarding tenant privacy.
Know the regulations for entering tenant spaces, and abide by them. In most cases there are strict regulations about how much notice you must give tenants before entering a space.
- Not doing the math.
To turn a profit on an investment property, get a handle on your expenses so that you know what to expect in profit.
- Leasing the most desirable spaces first.
WRA Realty, in “Top 12 Landlord Major Missteps that Can Slow or Derail Your Leasing Efforts,” suggests leasing your best space before the rest can actually compromise the perceived value of the rest of the property.
- Not properly vetting tenants.
You’ll want to sufficiently investigate the tenant’s financials, including their business plan, anticipated revenue and history. This protects you and your investment in the long run.
- Misusing capital.
You want to keep up your property to draw in and retain the best tenants. But investing in the wrong improvements can come back to haunt you. Pro tip: ask yourself if the improvement will help you lease space faster or at a higher asking price. Invest only when you can answer with a resounding yes.
- Failing to research the competition.
How do you know how much to ask of tenants if you don’t know what other, comparable properties command? You can position yourself competitively if you look into the properties your potential tenants are looking at.
- Not checking on the state of the property regularly.
Little issues can become big problems, fast. You don’t want to leave it up to your tenant to tell you when something’s gone wrong. Regularly inspect your property for emerging issues and nip them in the bud; you’ll control your maintenance costs and avoid potentially huge headaches, according to www.time.com, “Thinking About Becoming a Landlord? Avoid These 6 Rookie Mistakes.”
Sidestepping landlord missteps can keep investment properties in the black.
There you have it: eight major oversights that can keep you from leasing your property to its full potential. Stay on top of these common lapses, and you’re sure to not only draw the right kind of tenants to your property, but keep your existing tenants happy—and leasing from you in the long-term.
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