It's crazy to think there are 360,325 commercial leasing businesses in the U.S.A. However, they are the experts and you are not.
You wouldn't drive a car without knowing the basics of how it operates. So why would you dive into the world of commercial real estate without mastering lease administration?
Understanding lease administration isn't just a checkbox on your to-do list. It's the engine that keeps your commercial property business rolling smoothly. Let's dive in and explore three must-knows that will help you steer your business toward success.
1. Know the Basics of Commercial Leases
The first thing you need to get your head around is the nitty-gritty of commercial leases. These are not your run-of-the-mill residential agreements; they're more complex and offer various terms.
Commercial tenants are often looking for spaces that cater to specific business needs, like office environments, retail locations, or industrial facilities. Knowing what types of leases are appropriate for different commercial tenants is crucial.
When you're familiar with the ins and outs of commercial leases, you can draft agreements that are fair and profitable. So, pay attention to the terms, durations, and clauses. Remember, a well-drafted lease can save you from a world of headaches down the line.
2. Master Lease Management
Now, with your leases sorted, what's next? Lease management, my friend!
This is the practice of overseeing your leases to make sure everyone is holding up their end of the deal. This includes, but is not limited to, rent collection, maintenance issues, and even managing those unexpected emergencies that come with property ownership.
Lease management also covers tracking important dates like lease expirations and option periods. You don't want to scramble at the last minute, right?
Keep an organized calendar or even invest in lease management software. You'll thank yourself later.
3. Property Management Isn't Just About the Property
Surprise, surprise! When we talk about property management, it's easy to think it's all about the bricks and mortar.
But what often slips through the cracks is the importance of managing relationships with your commercial tenants. Happy tenants are often long-term tenants, and long-term tenants mean a stable income for you.
Regular check-ins and proactive resolution of issues can go a long way in building solid relationships. And don't just fix things when they're broken; consider regular upgrades or improvements that add value to the leased space. Your tenants will appreciate it, and your property will be more competitive in the commercial real estate market.
Bonus Tip: Keep Up With Market Trends and Local Laws
The commercial real estate landscape is ever-changing. Economic factors, local laws, and even community sentiment can impact your property's value and desirability.
Make it a habit to stay informed. Subscribe to newsletters, join local business groups, and keep an eye on what's happening in your community.
The Heart of Your Business Is Lease Administration
At the end of the day, lease administration is at the core of being a successful commercial landlord. Think of these three elements as the wheels on your car; without them, you're not going anywhere fast.
Contact us at PMI Mile High if you want professional help with lease administration.