Commercial property can be a very lucrative investment but it can also be a huge drain on your finances if things don’t go according to expectations. Unless you have a great deal of experience in the property management industry, managing your own commercial property can leave you open to a number of common pitfalls.
Even some professional commercial property managers are guilty of making the below common mistakes:
- Leasing to tenants who aren’t a good fit. While it can be tempting to rush to fill a vacancy, the wrong tenant could end up costing you more in the long term. A tenant that is not a good fit for the area or facility may not stay long, they may break their lease or struggle to pay their rent, and this will impact you over the longer term. In many cases it’s better to wait a few more weeks if it means you’ll get a tenant who will stay over the long term.
- Not creating proper legal agreements. A legally compliant lease is essential to protect both you and your tenants, but if you don’t have a clear understanding of the complexities and legalities of commercial property management it’s very easy to get this wrong. Always seek legal advice or speak to an experienced property manager regarding leases and contracts.
- Letting maintenance jobs slide. Commercial property maintenance is a massive, ongoing job and to keep on top of it you will need to be organised and proactive. Unfortunately, letting your maintenance tasks slip can make your property look unappealing to tenants, lead to complaints and even legal action, and it could also cause safety issues.
If you’re not confident managing your commercial property, it’s usually a good idea to hire a property manager. An experienced commercial property manager can save you money in the long-term by helping you avoid those mistakes that could come back to haunt you in the future.