The life of a commercial landlord can be financially rewarding as long as you are prepared, know what you’re doing, and have solid relationships with tenants.
Always, always anticipate problems. This strategy can help you avoid them. You don’t want any problems to surface as a result of an oversight on your part. There are so many issues for which a commercial landlord must be on the alert.
Among the important issues to consider:
- Comply with local building codes
- Have the property checked by a certified inspector
- Maintain the property
Have enough insurance
You also must minimize the risk of liability by making sure you have enough insurance to cover potential problems. Check the doors and window locks, security systems, roofing, and smoke alarms; and remove any asbestos.
California has its share of natural disasters, including earthquakes, mudslides and wildfires. So have enough insurance for your properties in case a natural disaster occurs.
A few other tips to consider:
- Maintain regular communications with your tenants
- Run credit and background checks on future tenants
- Educate tenants on the lease; they may not understand all the fine details, so provide a commercial lease summary chart that notes key provisions
- Be prompt in responding to tenant issues/complaints
- Try to resolve disputes before legal action is considered
Preparation is key in the commercial landlord-tenant relationship.