In an ideal situation, your commercial property tenants will pay their rent on time, take excellent care of the space, and otherwise avoid violating any rules outlined in their leases. But we don’t live in a perfect world, and you’ll likely run into some challenges if you own and lease commercial space. Here are some tips for dealing with challenging commercial property tenants.
1. Carefully Vet Commercial Tenants
The first tip for dealing with difficult commercial tenants is to avoid them and troublesome situations as much as possible. You can start by vetting your tenants thoroughly and ensuring you have a good tenant mix. For example, you might expect conflicts between a candy shop owner renting space next door to a health food store. Beyond this, dig into your applicant’s rental and credit history to ensure they are a reasonable risk.
2. Put Everything in Writing
Commercial property leases are business matters. As such, everything needs to be in writing, whether it be your lease agreement or discussions surrounding a disagreement. If you have a phone or face-to-face discussion, follow it up immediately with an email or letter to memorialize what was discussed so everyone understands their rights and responsibilities.
3. Educate Your Tenants
Sometimes tenants don’t read their leases or forget about their various responsibilities. As their landlord, you can calmly educate them about your various expectations, provided they are reasonable. This can set the tone for a fruitful and lasting business relationship.
4. Be Responsive
When a tenant contacts you about a maintenance issue or some other concern, make sure you respond quickly and appropriately. A fast response can go a long way toward building goodwill with your tenants and preventing future problems.
5. Utilize the Court System
The threat of a court-ordered eviction sends a powerful message that often prompts positive action from a difficult tenant. Landlords can leverage the court system for evictions. But they can also turn to the court for things like liens and consent judgments.
6. Hire a Property Manager
Not all tenants mean to be difficult. They might just be misunderstood. And emotions can run high when it’s your property. It’s often a better option to hire an experienced property manager who can help vet new tenants, handle maintenance and repairs, and deal with the occasional challenges that arise.
Get Assistance With Your Commercial Property Tenants
Owning commercial property can be incredibly lucrative. But you may not want to deal with challenging commercial property tenants. Let an expert handle these issues for you.
At Caldwell Commercial Real Estate, our team of seasoned property managers and realtors in Charleston, SC, has over 80 years of combined experience in the industry. Contact us to learn more about how we can put our knowledge and resources to work on your behalf.