How to Successfully Manage Your Commercial Property

Taking on the mantle of a commercial landlord is a huge responsibility, but one that has a big capacity for lucrative returns if done right. There is a lot to learn, and whether you have a vast amount of experience or you are new to the arena, it will be there to navigate nonetheless. Moving through these steps can feel overwhelming regardless of whether this is your twentieth property or your first, and that is why it is helpful to understand all the top steps for successful management. This guide explains all.

Tenant Vetting is Unavoidable

It is possible to find great tenants if you know how to search for them. There are a lot of people out there who will try their luck and fail to uphold an agreement, but the reverse is also true. Ultimately, it is your job to figure out who is suitable vs who is not. You can use an agency or decide to take up the task on your own. It is often easier with a third-party expert voice to help things move forward, but you can conduct references and credit checks where necessary. If you get the right tenants, you will be better able to manage things without mishaps and lost income.

Communication is Essential

There is a lot to be said for initiating honest and authentic communication channels with your tenants. It doesn’t matter if you only have one, or whether there are multiple occupants in the same building, if you fail to establish a genuine rapport, everything from this point forward will become strained and hard to manage. Therefore, as a commercial landlord, you must take the lead with this and learn to control the narrative successfully. There is a strong possibility that your tenants will find this desirable, and creating an amicable relationship that serves both parties beneficially is vital for your investment.

Maintenance is Unavoidable

It is time to take an unbiased look around your property. What does it feel like? Would you be satisfied working there every day or are there some eyesores and repair jobs that just can’t be avoided? If the latter is true, then it is time to take action. Maintenance, from a landlord's perspective, can never be avoided. Where there are renovations to be made or repairs to factor in, it has to be a top priority so that your tenants stay happy and your building remains viable. You are responsible for the basic functions such as plumbing, electricity, and so on but also structural things such as mould, ventilation, and even pests.

Look at Your Sustainability Factors

There is a noticeable drive in current times for commercial and domestic landlords to move into more sustainable practices. While it may require some initial capital investment, there is a lot to be gained from moving into more sustainable pastures. Not only will you be controlling your carbon footprint, but you will also attract a better calibre of tenancy as a direct result. An eco-considerate building can be as simple as changing your lightbulbs to something like LED bulbs, or as big as installing insulation and solar panels. The line is up to you, but it should definitely be a consideration that is put into action as soon as possible.

Control Your Rates

The one thing that will impact your investment potential is how much you have to pay in monthly outgoings in the context of utility bills. This is one of the biggest costs affecting the viability of a commercial property, and it will severely impact your capacity to see a profit. Thankfully, there is a really easy solution to this problem and it all boils down to taking a look at your suppliers and providers and deciphering whether or not there is an option to secure better rates and therefore optimal outgoings. You can find out more here about how to compare business water rates and get to know the ins and outs of business water contracts more closely. All of this will be beneficial to your overarching agenda, which is to be a successful property landlord and support your tenants while retaining the initial investment and maximising all the profits.

Control The Rent

Sometimes, increasing rent costs is an unavoidable part of being a commercial landlord. This has never been more true than in the current economy where inflation is high and the cost of running a building is even higher. This is something that has to be wholly considered without rash action guiding the way. If a rate must be increased, open communication will be more important than ever. Be fair, and consider the actual cost vs what is needed for a return instead of suffering a loss. It has to be viable for both parties, after all.

Successfully managing a commercial property is dependent on your relationship with the tenants, the way you handle the building, and all the energy you put into maintenance and sustainability. There is a lot to be said for an active approach, and it is often the best way forward.