Being a landlord isn’t easy. You’re called on to tackle many responsibilities at once. There are many things to think about, from profitability to staying up to date with new parliamentary bills affecting rental premises.
You’ve likely experienced first-hand how important it is for you to handle these challenges properly. If you don’t, you could find yourself stressed, facing financial difficulty or heading for a lawsuit from renters whose rights have been violated.
With this in mind, we’ve compiled this short guide to dealing with some common problems that commercial landlords face. Keep reading to find out what they are and what you can do to mitigate them.
Your property can become damaged for many reasons, including theft, extreme weather events and much more.
Depending on the extent of the damage, it can affect the lives of your tenants, be costly in repairs and even take away your rental income. It’s wise to take out landlord insurance to protect yourself financially in case damage unexpectedly occurs on your property.
It might seem unfair for you to be held liable for injuries that tenants suffer while on your property, however, in some cases this will be justified in the eyes of the law.
If you are found to have been negligent, you will have to answer for what befalls your tenants – even if you didn’t intend any harm.
Take the following steps to avoid prosecution:
- Be proactive in repairing the property
- Carry out regular inspections
- Notify tenants about any dangerous conditions
- Take steps to eliminate any dangerous conditions
Late rent payments
Dealing with tenants who don’t pay rent on time can be an arduous process, especially if they do so repeatedly.
Of course, you need to be strict with rent collection. If you let your tenants get away with being tardy, they won’t respect the rules. Follow up as many times and with as much frequency as is necessary to collect your rent. You’ll need to make them understand that timely payments aren’t a nice-to-have – they’re a necessity.
Finding the right tenant
The whole point of owning a rental property is to generate income. This isn’t possible without tenants. However, not just anyone will do. You need to put as much thought into choosing who to lease your premises to as you do when first selecting a rental property in the first place.
Consider getting references from any potential tenant’s banks, trade partners or previous landlords. You may want to also think about their financial strength in relation to the lease length – is there any chance that they will find it difficult to make payments on time? On the other hand, if their financial standing is good enough, their tenancy may even give the property a higher valuation. Bear all this in mind when screening prospects.
What problems do you commonly face as a commercial landlord? What steps do you take to solve them?