Residential landlords aren’t the only property owners to come across “problem” tenants; commercial real estate (CRE) owners have their share of business owners who cause problems and create headaches. Many times, a commercial tenant’s issues will result from the state of the economy. If business slows down, it may be hard for a commercial tenant to pay rent.
Commercial property owners depend on rent. If a commercial tenant cannot pay the rent (in a timely manner), the owner/landlord may have to evict the tenant once they find a new one to replace the current tenant. It can be smart to hold off on evictions and work with the tenant so the property will not have an empty rental space.
It’s in a commercial landlord’s best interest to also keep up with tenant complaints and building maintenance – that way a tenant who is failing to pay rent can say it’s due to the landlord failing at repairing/fixing issues within the property.
To avoid commercial tenant issues, it is also a good idea to truly get to know your tenants as a landlord so if a dispute occurs it can be handled smoothly. It is a good idea for a landlord to know its tenants’ businesses and what would mix well or not to both promote more business to the property while also not causing tenants to be angered. For example, a landlord may not want to lease out competing businesses in such proximity if it would cause issues with a current tenant.
Letting tenants know of the possibility of court-ordered evictions is a powerful tool to help keep tenants paying rent on time and abiding by their lease terms. With a well-thought-out and written lease, a landlord is showing he/she is anticipating and addresses most problems.
Before signing a lease, a commercial landlord should go through a thorough tenant-screening process to find quality, reliable tenants.
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As a Louisville commercial real estate brokerage, our team at HOWE Commercial Real Estate knows a lot about CRE investing and we want you to be successful in your investments. We cover the full spectrum of commercial-related investment services. We look forward to meeting with you and answering any and all questions you have about us and our services. We want to help you reach your financial goals with any CRE investment.
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