Tips for Commercial Property Landlords

If you are the owner of a commercial property and have chosen to handle the property management duties yourself, there are a few things that you MUST do--And if you have chosen to hire a professional property management company to handle the tenant and property responsibilities, than the list below is important for you when interviewing potential companies!

1. Screen potential tenants.
Before renting to any business, check credit history, references, and the background of the person or company renting the space. This may seem like a tiresome process, but it will save a ton of frustration later by eliminating those least likely to pay, pay on time, and keep the space in the best condition possible.

2. Get it in writing.
Always put the entirety of the rental agreement in writing -- including when and how you will collect rent, handle tenant complaints and how to report repair problem. Make sure to include what kind of notice you must give to enter a tenant's space, and how the agreement can be terminated--on both sides.

3. Manage security deposits properly.
Develop a system for collecting, holding, and returning security deposits. Create an inspection document that states the condition of the rental unit before the tenant moves in--including pictures if possible, to avoid disputes over security deposits when the tenant moves out. Be very specific, and return the deposit when the unit is vacated properly.

4. Make repairs quickly and professionally.
The fastest way to upset your tenants is to be lazy in the maintenance and repair needs of the property. If the property is not kept in good repair, you'll alienate good tenants, and you could potentially be violating the rental agreement.

5. Keep the property safe.
Take the safety and security of the property seriously. Keep landscaping neat and tidy, install and test regularly the smoke detectors and fire extinguishers. Make sure doors and windows close properly and lock and that the property and building steps and walkways are clear of debris and kept in good condition.

6. Provide notice before entering.

When possible, notify your tenants whenever you plan to enter their rental unit. Respect their privacy and their feeling of security by giving as much notice as possible.

7. Disclose environmental hazards.
If your building or the property has a known environmental hazard such as mold, it is your responsibility to disclose the issue. Landlords are increasingly being held liable for tenant health problems resulting from exposure to environmental toxins in the rental premises--so disclose the issue and take the necessary steps to resolve it.

8. Protect yourself with insurance.
Make sure to obtain enough liability and property insurance. Proper insurance will protect you from lawsuits filed by tenants, or visitors for injuries, losses, and other unforeseen problems.

9. Resolve disputes.
As the property manager, it is your job to resolve disputes with your tenants (or amongst them) quickly and professionally--hopefully without lawyers and lawsuits. If you have a conflict with a tenant over rent, repairs, noise, or some other issue that isn't one that merits immediate eviction, you should meet with the tenant to see if the problem can be resolved informally. Third party mediation is also an option to consider in some locations.

There are many things that a property manager handles daily--and it is never the same twice!

If you are interested in more information on property management in Charlotte, call Kuester Property Management at 704.973.9019.

Property Management: Being a Good Tenant

If you are a commercial renter, and you deal with a property management agency or property manager – you have a unique relationship that needs to be nurtured and respected. A good relationship with your property manager will ensure you have a wonderful stay at this property. A bad relationship, will leave you both unhappy and unproductive.

When moving into the property, be sure to politely reach out to your property manager with a friendly “Hello!” and provide the best contact information for your business. You want to make sure the lines of communication are open. If your property manager can contact you easily, it might mean they take your calls quicker later down the road. You don’t need to be your property manager’s best friend. But, you should immediately demonstrate your ability to work with them. Let them know about any special circumstances concerns you may have. Will children be in the space? Do you have employees with special needs? An odd work schedule? Let them know.

When a problem or situation arises in your commercial rental unit, contact the property manager immediately. Depending on your rental agreement, you might be able to handle the crisis yourself. Still, you want to make the property manager aware of it ASAP. Once they are aware of the situation, give them a professional amount of time to handle the problem. Don’t keep calling, avoid pestering or annoying your property manager or agency. Some property managers have several properties, or this is a side-job or part-time situation for them. Contact them with issues that they are obligated to address in the lease agreement. Be polite, professional, and businesslike when you do contact them.

You should understand this is a business relationship and you need to maintain some boundaries. If your property manager is not responding to your needs, you should discuss it with him/her before going to the landlord or outside assistance. If you are supposed to have your sidewalks shoveled within 12 hours of snow-fall, then that is what should be done. Don’t bend too often, or you might find yourself bending always.

A property manager, like landlord, is there to ensure your commercial space arrangement is exactly what you are paying for…with your help! If the two of you work in tandem, you will ensure a safe, secure, and stress-free business relationship.

If you are looking for commercial, retail or office space in the Charlotte, Fort Mill, Boone, Myrtle Beach, or Concord area, please give Kuester a call!

Kuester Companies
Corporate Office
1300 Altura Road
Fort Mill, SC 29708
tel: 704.973.9019
toll free: 888.600.5044
fax: 803.802.0005

Kuester Companies
Coastal Office
1200 48th Avenue North; Suite 102
Myrtle Beach, SC 29578
tel: 843.839.9704
toll free: 888.600.5044
fax: 843.839.9706

Kuester Companies
South Park Office
6600 Central Pacific Avenue
Charlotte, NC 28210
tel: 704.973.9016
toll free: 888.600.5044
fax: 704.552.1008

Kuester Companies
Boone, NC Office
178 Highway #105 Extension Suite 201
Boone, NC 28607
tel: 803.578.7725
toll free: 888.600.5044

Kuester Companies
Concord Office
9505 Moss Plantation Avenue
Concord, NC 28027
tel: 704.973.9017
toll free: 888.600.5044

Hiring a Property Manager or Management Company

So you’re tired of doing it all yourself, and you’ve decide to hire a property management company to help you run your new rental empire! Finding the perfect person to fit into this important position is a momentous task. To help you find the right person for this key role, we have come up with a few simple tips for you to remember while interviewing prospective property managers.

1) Get recommendations and references! Look over qualifications! Do background checks and make sure that this person/company is honest and reliable.

2) Check over the professional directories, like the Institute of Real Estate Management (IREM) at www.irem.org and the National Association of Residential Property Managers' (NARPM) at www.narpm.org. You will find plenty of information there to help your decision.

3) Interview the candidates yourself. They will be your proxy, so you better trust them. You will want to make sure you have a clear ability to communicate with your possible property manager-- and you need to know they will be able to communicate with your tenants.

4) Are they a local? Someone with experience, connections, and some time spent in your community is always preferred. A property manager who knows the streets of your city, the contractors, the rules and regulations, will ease every one of your headaches.

5) Make sure they your candidate is a professional who can serve in your stead. You want a person who can calmly handle any problems thrown at them.

6) Talk to your attorney, any partners, and your current tenants. Listen and observe, take advice, be open to suggestions. A good referral from a trusted source goes a long way.

Make sure to talk to as many candidates as possible. This is an important job, and you don’t want to hire the wrong man or woman (or company) for the job.

Property Manager
Kuester Companies

When Should You Hire a Property Management Company?

One of the major decisions as a property owner is whether you should hire a property management company. Many landlords manage properties all by themselves, occasionally with the help of an employee or associate. Depending on the type of property, and how demanding your tenants are, some landlords might need outside assistance.

Property management companies often are the landlords first line of defense. They take the late night phone calls, they collect the rent, they haggle with demanding tenants. Nightmare tenant? The property manager will even handle the eviction. A qualified management agency will also bring their contacts and experience to your property, sometimes having more solid networks and resources then an individual.

If you have lot of properties or units that you rent to the public, the more you're likely to benefit from a management company. Especially if your full-time job isn’t going to be a landlord. Living out of the region from the property in question is also incredibly tough. You can’t react quickly or easily to any property issue if you are several time zones or states away. Hiring a property management service is critical in dealing with issues that you will not be able to handle from across the continent.

Many landlords and property owners are looking at additional properties as investments. They shirk away from any type of hands-on management, as it is either not their forte, or simply they have different priorities. If you have never had to find a tenant or renter for a property, you will discover that it can a rewarding, interesting, frustrating, stressful, and exhausting process. Spending your weekends interviewing possible renters may not be your cup of tea. If you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.

If you happen to participate in an affordable housing program, things are going to get super complicated. In these programs, the landlord receives financial assistance, in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. In order to receive the financial assistance, the landlord must comply with a STRINGENT set of rules. There is a ton of paperwork, as there always is with anything that the government hovers around. Again, if you are not planning on being a landlord FULLTIME, then you should hire a property management company that has past success with these particular housing programs.

Now if all this sounds interesting or intriguing to you, then perhaps you need to start talking to some possible property managers. How do you find a property manager? Well….That is a completely different article! Tune in again in a few weeks to find out our advice on how to FIND a qualified property manager.

Property Manager
Kuester Companies
Charlotte Concord Boone Myrtle Beach Fort Mill

Property Management for Condo Building Owners

If you have taken advantage of the buyer's market and the great prices on property by buying a condo building, you are probably trying to figure out what your next step is!

You have made a huge investment, and in order to get the most of that investment, you need to maintain, (and where possible improve) the condominium's condition. Managing an investment property and dealing with the maintenance aspects of buildings can be a daunting task--one that often requires the assistance of a full-time property manager or firm. The management company will charge a fee that you may feel is a substantial amount, but when you look at the services offered, you will see that the benefits far outweigh the costs.

Collecting Rent
Collecting rent can a very difficult and time consuming task--unfortunately, you sometimes have to chase tenants down, or handle situations when they are behind on their payments. For a non-professional, this can be very frustrating, (alas, even for the professional, it is frustrating!) but property management companies have developed processes and other mechanisms to be able to make this as pain-free and efficient as possible. They will make sure that rent is paid on time--and that you get your money!

A professional property management company will also be able to assist you in determining the fair market value of the condos and how much you should expect based on your competition, location and building. This will help you keep maximum occupancy!

Tenant Screening
You don't want just anyone occupying your condo. After all, you have an investment to protect!Tenant screening is one of the most difficult duties of any rental property owner. Luckily, the company responsible for the management of your properties will do for you. They will have each prospective tenant fill out an application, and they will call references, employment, credit and other factors before making the decision to allow them to become a resident.

Marketing
Property management companies have the experience marketing property in your area. They know what works, and what doesn't. By utilizing an established property management firm, you are protecting yourself from the expense of trial-and-error marketing--and getting the most of your investment.

Legal
An experienced condo property management company will have knowledge of the legal issues and regulation associated with your condominiums. Staying in compliance with your federal, state, and local rules and regulations will be important and a good property management company can advise you on these matters and connect you with a real estate attorney when appropriate.


If you need anymore information on condo property management, or if you have a property in the Charlotte area, Fort Mill, SC, Boone, Myrtle Beach, or Concord and would like to know more about our property management services please contact Kuester at 1-704-321-8199.

Property Manager
www.kuester.com

Property Management: What Services to Expect

A property management company will offer services that can vary depending on the company, the type of property and your specific needs. When deciding which company with which to work, ask the property management company what services it will provide you. Once you make your decision, you should confirm that you have the an agreement on the terms in the lease. The lease agreement should be comprehensive and outline the services and what the services will cost.

Here are some of the services commercial property management firms will typically provide:

Finances & Bookkeeping. Financial record keeping and reporting are integral services provided by your property management firm.

Strategy. A commercial management company can develop a marketing strategy and analyze the current business conditions in your area, and for your property.

Budgeting & Forecasting. The property management firm develops and monitors the property's budget, including the maintenance, marketing, personnel to operations.

Maintenance. Commercial property management companies provide monthly maintenance, and preventative maintenance programs.


Marketing Programs. Firms can develop and implement marketing programs including such marketing materials as brochures, advertisements, events, property newsletters, and signs.

Market Rent Analysis. Management firms will provide an analysis of market rents and those of the competition, changes in area demographics, and anticipated absorption levels.

Rent Collection. The property management company will handle the collection of rent.

Lease Negotiation. The commercial property management company will negotiate tenant leases and renewals.

Tenant Liaison. The professional property management firm acts as a liaison to the tenants, responding to tenants' needs and addressing concerns immediately.

Upgrade and Build-Outs. Commercial property managers handle and supervise all contracted work (such as tenant build-outs).

Compliance. Commercial management companies maintain documented procedures to ensure compliance with all federal, state, county, and local governmental regulations, ordinances, and fire, health, and safety codes.

Choosing Tenants for Commercial Property

Dear Property Manager,



I have been leasing out a small commercial property for about a year now. I have had good luck, and bad luck with the tenants. Some are great... and well others have been a huge headache. As the lease terms are up, I want to do a better job screening my tenants. What advice can you give me and other landlords so that they get the best tenants for their commercial properties?



Henry J - Charlotte



Dear Henry,

As a landlord, having the right tenants is very important--they can be the difference between a profitable business and one that is full of dissapointment and frustration.



Problem tenants, may or may not be easy to spot at the onset - and your "gut instinct" could put you in an unfavorable position with a cronic late-payer, or worse.


We have 10 recommendations that you, and other landlords can follow to choose the best potential tenants.

1. Use a rental application. A completed rental application will give you the the starter information you will need to know about the applicant, including references.


2. Follow the Fair Housing Act (FHA). This act is in place to ensure that landlords are not denying someone the ability to rent property based on race, religion, or similar reasons. Make sure to follow the regulationa and avoid claims of discrimination by adhere to the FHA's code of ethics for landlords.


. Get proof of identity. Insist on seeing a valid photo identification card from your potential tenants. The rental application should include a section to write down the driver's license number. Make a photocopy of the photo ID to attach to the application.

4. Perform a background check. Checking up on your potential tenant's past may not be fun, but it can help ensure that there are no preexisting problems lurking beneath the surface. If your potential tenant has a history of skipping rent or destroying property, you may be able to find this out through a background check.

5. Perform a credit check. In addition to a background check, you can check a potential renter's credit history. You will need to get his or her permission in writing as well as their Social Security number to perform this check.

6. Get the name of the previous landlord. Not all landlords report problem tenants to the authorities, so it's a good idea to follow up and check with their former landlord.

7. Ask for character references. Ask for references ? and actually check with them. Not all applicants will give you "real" references, so following up is essential.

8. Meet your prospective tenants in person. In our busy world, many people are switching to digital communication and phone meetings. However, it's important to take the time to actually meet face to face with your potential tenants. This will help you get an idea about their personalities, and goes a long way toward making a lasting relationship.

9. Protect yourself. In addition to following the FHA, your rental application should state what you will do with the information your potential tenants provide. If you do not have their permission to run their credit report, you may not do so. Be up front by explaining your process, so you'll be protected from potential future allegations of impropriety.

10. Include a written code of conduct with the rental application or written lease. This should clearly state what's expected of you and your tenant, and will allow you to make sure everything is clearly explained. Have the prospective tenant sign that they have read the code of conduct.

By covering all your bases, you can help ensure that you will not only have the best tenants for your rental property, but also that your rights and the rights of your potential tenants are being protected.

Lease Agreements: Property Management

Dear Property Manager,

I have owned a commercial building in Concord for 2 years that I took over when my father passed away. I had hired my brother-in-law to handle the property management for me, but I am realizing now that this was a mistake. The tenants have been complaining about lawn maintenance, and building upkeep—including areas that I think are their responsibility, and have joined together saying that they will not pay rent this month unless I take care of these things. My lease agreement states that the tenants accept the premises “as is”—and are responsible for the inside building maintenance, but one of my tenants is an attorney, so I need to be careful. I don’t want to lose the tenants, but I don’t know how to make all the changes without increasing rent, or even if I am legally obligated to do so.

I need to help with this situation—and then hire a professional maintenance company. Do you have any suggestions?

Gary H. Concord, NC

Dear Gary –

First off, I need to say that I am not a commercial real estate attorney – and clearly you need to talk to yours.

What I can tell you is that most commercial leases provide that the landlord will take care of things like maintenance of the common areas of the property – and that includes the lawn maintenance, parking lot, common hallways or sidewalks. Generally, unless the property is a single-tenanted building, the lawn, for example, is not under their control. There is a part of your lease that deals with your specific landlord obligations, and probably addresses what you are responsible for. It would probably be best for you to consult your lawyer to assist in interpreting whether you are entitled to recover the costs associated with upkeep of the common areas, and repairs. But my recommendation would be to make the repairs and hire a qualified property management company immediately to deal appropriately with tenant satisfaction and management. In the long run, you will save money and frustration, and keep your building filled—which in this economy is especially important.

If you would like to speak to someone in our Kuester Concord office, give us a call at 803.578.7701.

Property Manager
Kuester Property Management

Commercial Site Location Services

Dear Property Manager

I have decided to launch an Italian restaurant in one of the suburbs of Charlotte. A buddy suggested I consult with you to help determine what locations would be the most advantageous. Could you please outline what services you provide?

Joey G.

Dear Joey –

Congratulations on your decision to open a restaurant!

In the past 32 years, we have helped hundreds of companies like yours find ideal locations that provide the greatest benefits for business growth.

Initially, we will sit down with you and determine whether you’re looking to launch a fine or casual dining restaurant and the necessary logistics such as seating capacity, kitchen size, ambiance desired, etc. We’d determine whether you prefer to build your restaurant or to lease or purchase an existing facility. If you prefer the latter, would you be seeking a turnkey move-in or whether renovation is an option.

To assist you in your decision of where to open your restaurant, we conduct market research, establish market development plans and conduct site tours to assure the best location. Then, we work on your behalf to ensure the best business arrangements to achieve your long-term goals.

Other services we provide include:

-->Trade Area Analysis
-->Site Package Process
-->Approval Coordination
-->Contract, Lease Negotiation and Legal Coordination with Analysis

Before you take that next critical step, give us a call at 803.802.0004.

Best regards,

Property Manager
Kuester.com

Office Rental Hidden Costs

Dear Kuester –

I am thinking of renting an office space and would like your advice on what issues to be aware of beyond price per square foot and additional hidden fees.

Kenny T.

Dear Kenny –

You are wise to be cautious when renting an office. Be sure that, in your calculations, you have figured in the “hidden costs” you mention such as service charges, heating, air conditioning, lighting, furniture, insurance, and so forth. Once you’ve add in all incremental charges, does it still fit comfortably into your budget?

Another issue to consider is whether the space will serve you over the long term. It may look perfect now, but is it able to accommodate your plans for growth? If you add employees a year or two from now, will it still meet your needs or will a move be required?

Do the premises match your business’ “brand?” Is the building and its occupants consistent with the image you’d like your business to portray? Check what type of neighbors you’ll have and whether their businesses may interfere with “quiet enjoyment” of your space.

Talk to neighboring tenants. Is the building well-maintained? How is it managed, and by whom? Do the managing agents or owners respond quickly if there’s a problem? Are there ongoing issues that haven’t been addressed? What sort of regulations (such as hours of service for a freight elevator) might pose a problem for your business?

Balance location convenience against cost. Many business owners select offices that are remotely located to cut on costs, but discover it’s a false savings. It may be harder to get and keep employees and clients. It can add additional transportation costs for banking, mailing and picking up supplies. Are the amenities nearby adequate to serve your business’ needs (restaurants to which you can take clients, hotels in which they can stay).

Depending on your business, there are many considerations to take into account when renting or leasing office space.

We have been involved in renting, leasing and selling real estate for over 30 years and we’d be happy to offer our expertise to make sure your rental office meets your current and future needs. Please give us a call at 803.802.0004 for an appointment.

Best regards,
Property Manager
Kuester Property Management

Tenent Representation in Charlotte

Dear Property Manager,

I work for a large manufacturing company that is opening a division in Charlotte. We are looking for a property that will work for us, and know that we may have to build. Our timeline is 9-12 months out. Can Kuester assist us in this?

Brett M.

Dear Brett,

Charlotte is a wonderful place to work and live, and I assure you that you will find this a great place to do business. Kuester's KRES Tenant Representation Services provides tenant representation which I believe you will find unparalleled. We work in conjunction with our clients to conduct market research, market development plans and site tours. Our goal is to provide you the best location and best deal for your business. We offer the following services:

Site Location Services
Trade Area Analysis
Site Package Process
Approval Coordination
Contract, Lease Negotiation and Legal Coordination with Analysis

We look forward to the opportunity to work with you on your new location. Please contact us at 803.802.0004.

Kuester Property Management