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.
Showing posts with label for lease. Show all posts
Showing posts with label for lease. Show all posts
Sunday, March 22, 2009
Saturday, February 21, 2009
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
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
Thursday, January 15, 2009
Looking for a Property Manager in Charlotte
Dear Property Manager,
We are opening up a new office in the Charlotte area and have decided to buy the building and lease out the extra space until (and if) we need it as we grow.
We are a legal services firm with other office in Seattle, WA and Madison, WI and we are excited to be expanding into the Charlotte market.
As our headquarters are in the Seattle office, we will need to contract with a company to assist us in renting out the office space, as well as handling the building maintenance and collecting payments from our tenants, and the other financial details.
Is your company set up to handle both commercial leasing and management?
Nathan W.
Seattle
Dear Nathan,
Congratulations on you expansion to the Charlotte area. Charlotte has much to offer and I believe you will find this to be a welcoming and growing business climate.
The Kuester Companies offer a full suite of real estate services, including commercial leasing & brokerage and property management. Both of these services are available through the Kuester Real Estate Services Group.
We would be happy to assist you in renting out your available space as well as in managing your property after it is leased. Please contact us at 803.802.0004, and we can get started in setting up your tenant space and finding the right occupants, as well as establishing a management agreement so when your Charlotte-based team has their first day, they can focus on getting their jobs done--and not on the details of property management.
Thank you for contacting Kuester.
Property Manager
Kuester Property Management
We are opening up a new office in the Charlotte area and have decided to buy the building and lease out the extra space until (and if) we need it as we grow.
We are a legal services firm with other office in Seattle, WA and Madison, WI and we are excited to be expanding into the Charlotte market.
As our headquarters are in the Seattle office, we will need to contract with a company to assist us in renting out the office space, as well as handling the building maintenance and collecting payments from our tenants, and the other financial details.
Is your company set up to handle both commercial leasing and management?
Nathan W.
Seattle
Dear Nathan,
Congratulations on you expansion to the Charlotte area. Charlotte has much to offer and I believe you will find this to be a welcoming and growing business climate.
The Kuester Companies offer a full suite of real estate services, including commercial leasing & brokerage and property management. Both of these services are available through the Kuester Real Estate Services Group.
We would be happy to assist you in renting out your available space as well as in managing your property after it is leased. Please contact us at 803.802.0004, and we can get started in setting up your tenant space and finding the right occupants, as well as establishing a management agreement so when your Charlotte-based team has their first day, they can focus on getting their jobs done--and not on the details of property management.
Thank you for contacting Kuester.
Property Manager
Kuester Property Management
Monday, December 22, 2008
Looking for Retail Property in Matthews
Dear Property Manager,
I read a recent Forbes.com article highlighting Matthews, NC and this is amongst the reasons I am looking at opening up my retail store in Matthews in 2009.
Is there a list of available commercial properties in Matthews online like they have for residential properties?
Cam L.
Dear Cam,
Happy holidays.
We have several properties available in the Charlotte area, including Matthews for rent or sale that may suit your needs. Check out some options on the properties page of our website, or give us a call at 803.802.0004.
Today we are featuring a "for lease" property at 343 W. John St. in Matthews , NC in the CrownPoint/Matthews Submarket at the intersection of S. Ames St. This plaza has great traffic and visibility for restaurants, retail, office & professional users. The previous tenant was a billiards hall, so the existing space is set-up for a bar & billiards, with an easy upfit for a bar or restaurant space--but the potential to be much more, depending on your needs.
We look forward to hearing from you soon, so that we can find you the perfect retail space in Matthews, or another great location in the Charlotte area.
Property Manager
Subscribe to:
Posts (Atom)
