In 2024, the commercial real estate market was the fourth-largest market in the U.S., which shows how many landlords are profiting from the boom.
A lease management strategy protects your investment and generates a great ROI. But if you're new to commercial leasing, you likely won't know where to focus your efforts.
Sounds like your situation? Don't worry, we've got the tips you're searching for. Here's everything you need to know.
Understand the Space
Many new landlords forget that dealing with a commercial property differs from a residential one.
Commercial units have different requirements. For instance, buildings must follow safety measures and industry standards. The key is to familiarize yourself with local laws and record everything you invest in, from current maintenance to any upgrades.
Further, commercial property landlords must figure out the lease terms. This highlights your responsibilities and rights to protect both you and your tenants.
Invest in the Right Software
As with every area of your business, automate wherever you can. Use property management software to oversee every aspect of the rental process. This should also include a tenant portal to stay connected. The beauty is that you can log in wherever and complete various tasks, such as rent collection and handling maintenance requests.
Schedule Regular Maintenance
Protect your investment by arranging regular maintenance. Although there's an upfront cost, staying atop of projects will save you money in the long run and prevent a high tenant turnover rate. Focus on the commercial building's electrical, ventilation, and plumbing systems, at the very least.
Not only will it keep tenants happy, but you may increase property value and avoid legal battles by complying with local law.
Resolve Tenants' Issues
Another useful tip is acting on tenants' feedback or issues. Encourage tenants to be honest about the property as it shows you value their business. The simple act of being open will reduce tenant turnover and the vacancy rate, which is a landlord's biggest nightmare.
Ask tenants to leave messages in the portal, so that they can contact you around the clock. This will streamline the process and prevent you from forgetting the feedback.
Hire a Property Management Company
Regardless of whether it's commercial or residential, managing a property is no easy feat. That's why most landlords hire a property manager to oversee their investment.
Commercial property managers have a wealth of experience in the industry and understand how to protect your real estate. Meanwhile, property managers inform tenants throughout the process. By outsourcing your needs, you can focus on other areas of your business and have peace of mind knowing your investment is in good hands.
Our Commercial Lease Management Tips
Now that you're a whiz with commercial lease management, let's get started.
At PMI Chattanooga, we have experience in commercial real estate and know how to protect our client's investments. From tenant screening to handling maintenance, we will keep you in the loop so you and the tenant are happy.
If you're interested in our services, contact us today to chat with a team member.
