Owning commercial real estate means having to deal with tenants and the problems they present. But, there are several easy methods for controlling tenants. Keeping them under control creates a more harmonious environment, making the building more attractive to prospective tenants. This level of control is one of the keys to effective property management.
It is the property management that is responsible for making certain that tenants pay their rent on time. An effective property management rule is to require the rent to be collected on the day that is specified in the lease. This keeps any confusion about the due date and other rent issues from getting out of hand.
Tenants must also respect their apartments, which can be hard to enforce. However, it’s part of owning commercial real estate and taking an active role in commercial property management. Avoiding the cost of repairs is the main reason for this type of rule. If a tenant doesn’t respect their apartment, there will be repairs needed when the unit is no longer occupied.
In order to keep peaceful surroundings for all the tenants, they must respect their neighbors. This can be accomplished with specific rules that relate to the way neighboring tenants are to be treated, such as respecting quite hours. Keeping the noise level under control is something that property management must take seriously. If a tenant does not follow this rule, it calls to the property management to enforce it. Many property management companies will have specific rules about the repercussions, which can include a number of warnings before action is taken.
The tenant that moves in and has obvious problems with drugs, there should be steps taken toward property management terminating the lease. These tenants usually have more traffic than the other tenants, and may have other character flaws that will become apparent to property management and tenants. It can also give the building and the property management a bad reputation.
Apartment building investing is one of the first steps many investors take into commercial real estate. Once the property is obtained, the tenants depend on you for property management. If your rules are followed, the tenants will be content and your apartment investing is more likely to pay off in profits.
Commercial property management can be made easier by implementing at least one rule, which is to keep the building in good repair and the exterior trash area clean. This tells prospective tenants that this is a well-run, clean building. This image will bring in the preferred type of tenants to fill your rental units. Remember there are as many good tenants looking to relocate to a new building as there are bad tenants. What kind of tenants you have will depend largely on the type of property management you have in place.