It might seem like managing your commercial property would be a part-time job. But there’s so much to keep track of and tend to that things can pile up quickly. If something falls through the cracks or isn’t done as well as it should be, it can turn into a costly error. You might be faced with expensive repairs, legal issues, or damage to your reputation. All of these impact your bottom-line results. Discover whether or not your commercial property investment is leaking money.
7 Signs Your Commercial Property Investment is Leaking Money
Here are some signs your commercial property investment could be leaking money and how you can address those issues.
1. Not Collecting Rent from Tenants
It might seem basic, but you won’t make any money if you aren’t collecting rent – in full. You’ll get the most out of your investment if your tenants are paying their rent on time each month. This is the first thing you’ll want to address.
2. Failing to Deal with Delinquencies
When tenants do fall behind on their rent, it’s important that you work to resolve these issues quickly. Your commercial lease will spell out each party’s rights and responsibilities. If tenants aren’t paying, you may need to pursue legal remedies.
3. Not Connecting with Tenants
Communication is vital when it comes to your commercial property business. This starts with building strong relationships with your tenants. Get to know their particular needs and make sure you respond promptly to their requests for service or any inquiries.
4. Failing to Track Maintenance and Repairs
Not addressing regular maintenance and necessary repairs can lead to more expenses down the road. For example, an ignored malfunctioning HVAC unit might need replacing when a simple repair would have worked. Make sure you track these items and keep them up to date.
5. Not Optimizing Your Vacancies
Market conditions can change quickly. When you have a vacant space, you can lose money if you don’t research the current market before listing it. Make sure you spend the time to optimize these listings so they rent quickly and at the right rate.
6. Failing to Track and Control Expenses
Your expenses as a commercial property owner can make or break your business. Which ones are you taking on, and which are you passing on to your tenants? Also, make sure you are creating favorable agreements with business partners.
7. Not Addressing High Turnover
High turnover can cost your business a ton of money. It’s vital that you address this issue so you can identify what is causing it, such as high rents, poor maintenance, or lack of communication.
Get Professional Commercial Property Management in Charleston
If you recognize any of these signs or want to avoid trouble in the future, it’s probably time to consider professional commercial property management. We can help. Caldwell Commercial Real Estate in Charleston, SC, understands the enormous responsibility involved in owning and managing commercial real estate. Our team of commercial realtors and property managers has over 80 years of combined experience in the industry. Contact us today to learn more about how we can put our resources to work to help you get the most out of your property.