There are several types of commercial real estate you can invest in. However, do you know what mistakes to avoid when owning a commercial property?
Owning a commercial building can be a lucrative investment. However, ownership comes with a lot of responsibilities and they aren't all easy to manage. Commercial property managers have a lot of experience and knowledge which you can benefit from.
In this guide, we've listed five mistakes property managers want you to know about and avoid. Keep reading so you can be as successful as possible.
1. Overlooking Lease Agreement Details
Once you have a commercial property, you'll need to spend time familiarizing yourself with the lease.
It's not uncommon for a commercial building owner to make the mistake of rushing through or neglecting the details of lease agreements. By ensuring the lease agreement is comprehensive and legally sound, you'll protect your interests while also creating a good relationship with your tenants.
2. Underestimating Tenant Communication
Communication can make or break your investment. We know you're busy and have a lot on your schedule as an investor, but communication between your tenants shouldn't be overlooked.
When your tenants sign a commercial lease, your property manager is going to emphasize the importance of addressing their concerns and requests as soon as possible.
3. Lacking a Strategic Marketing Approach
Don't underestimate the power of a strategic marketing approach. An effective strategy will help you attract and retain tenants.
A property management team will likely advise you to use a multifaceted approach. This will include working with other professionals in the industry, using social media, and posting your listing online.
If you ignore their advice or don't put a marketing strategy together, you may not be as successful as you want.
4. Ignoring Market Trends and Tenant Needs
As an owner, it's vital that you listen to your commercial property managers. They have more knowledge of the market and recent trends.
Embracing innovation and being open to making necessary upgrades can significantly enhance your property's appeal. Often times owners won't pay attention to changing market demands, especially when it comes to property offerings and amenities.
Neglecting to adapt will only make it harder to keep your unit filled with tenants.
5. Neglecting Regular Maintenance and Upkeep
Commercial property managers often observe owners ignoring regular maintenance and upkeep.
While a small issue may not seem like a pressing matter, it can turn into a big problem. This only leads to more expensive repairs and tenant dissatisfaction.
To be a good property owner, you must prioritize routine maintenance checks. This includes ensuring the plumbing and HVAC systems are working properly. It also means keeping the exterior in good condition as well.
Neglecting regular maintenance will only shorten your building's lifespan and cause more issues with your current and even future tenants.
Beyond Ownership: The Role of Commercial Property Managers
Being a property owner isn't easy. Lease enforcement, communication, and marketing strategies are all important factors that your commercial property managers are going to encourage you to focus on.
There's a lot of information to know, but our property managers can make it easier for you. Give us a call today and we'll answer any questions you have.