There are 20 million rental units available in the U.S., many of which are commercial properties.
Equipping yourself with the right tools and learning the rules is essential for protecting your investment. But with so much information online, figuring out a starting point can feel overwhelming.
Sounds familiar? Don't worry, we've got the answers you're searching for. Here's everything to know about lease management.
Automate Whenever You Can
It's no surprise that the top commercial management tools include software. This is great if you're not confident in crunching numbers and would rather focus on other areas of renting. For instance, the management software can help you calculate ROU (right of use), track payments, and organize your taxes.
Conduct Regular Inspections and Maintenance
Regular inspections and maintenance are essential. This is regardless of how many commercial properties you own.
Inspecting the property will let you identify potential issues and, hopefully, act before they develop into costly problems. It also means that your properties comply with local codes and regulations, which will prevent legal trouble.
Further, work with a property management company to create a maintenance program. Although there's an upfront cost, you save money in the long run by servicing the HVAC system and inspecting the plumbing.
Seek Professional Help
Don't have time to visit your commercial properties? Then, hiring a property management company is a no-brainer.
These professionals will share their knowledge on how to best maintain your property and maximize your income. You can also rely on property managers to protect your investment from potential risks that could cost a fortune in repairs.
Communicate With Tenants
Sure, it sounds obvious, but many landlords forget how important communication is. Get in the habit of sharing regular updates, whether it's about maintenance schedules or changing lease terms. Being transparent will show tenants you care and value their business.
Act On Feedback
Listening to tenants and acting on their feedback can save you a huge amount of money. If you can't, your property manager will focus on retaining great tenants by communicating regularly and acting quickly, such as fixing the A/C unit. When you do, tenants are more likely to renew their lease teams, so you needn't worry about losing profit.
Prioritize Financial Management
Because you're running a business, you must constantly check the books to stay on track.
Sharing timely financial reports with your property manager will help them make informed decisions and figure out where you're losing money. If you're not a numbers person, hire an accountant to produce statements and conduct a cash flow analysis, so you know where you stand.
Improve Your Lease Management Skills Today
Hopefully, these tips will make lease management less intimidating.
At PMI Central Florida, we understand landlords struggle to manage commercial properties, which is why we're here to help. With years of experience under our belt, we can share our expertise and ensure you're turning a profit with your commercial property.
Need property management help? Contact us today to speak to a member of our team.