Being a commercial landlord has its perks. It has the potential to bring in a hefty income. However, if you don’t do things correctly, it can also be an expensive hassle. Take steps to make sure that you’re doing everything right, so you can get the most out of your investment property.
1.) Make maintenance a priority. Always consider what your maintenance needs might be, now and in the future. Preventative maintenance can help reduce expenses by lowering the risk of more costly issues down the road.
Also, remember to keep emergency savings set aside for any potential issues you could encounter. You don’t want to be tempted to try to bandaid something that needs to be repaired because you don’t have money for a rainy day. And, remember, if there is a maintenance issue, respond to it with immediacy. You will increase tenant retention by being quick to respond.
2.) Treat your tenants the way you want to be treated. Tenants often learn to treat their landlord the way they are treated. So, if you’re not quick to respond to them, they probably won’t be quick to respond to you. If you’re friendly and handle things with care, they’ll be more likely to show you the same respect as well.
3.) Always screen your tenants thoroughly. Don’t take chances. Make sure you have a great screening process in place that includes background checks, references and a review of credit scores.
4.) Make sure everything is in the contract. Any pertinent information needs to be written down and the contract needs to be signed. Verbal contracts will not protect you if something goes wrong.
5.) Always treat tenants equally. You can’t play favorites as a landlord. This will only get you into trouble. This is something to keep in mind when you’re deciding whether to rent to family or friends.
6.) Hire the help you need. You may be tempted to DIY certain maintenance issues, but if you’re not a professional, you may end up making a mistake that could cost you more. Consider leaving maintenance to the professionals. This applies across the board. Hire a lawyer to handle legal battles or an accountant to take care of your finances. You can also hire a property management company that has the right connections and can make sure everything is handled correctly.
7.) Know the laws. Help prevent potential issues from arising by being familiar with any legalities that apply to owning a commercial property.
We hope you’ve found these tips helpful. If you’re looking for a property management company, please reach out to us at PMI: https://www.flintpropertymanagementinc.com/. We’re here to assist you.
