Although owning a commercial rental property is an enviable investment, it does not come without flaws. A landlord must keep up with many things in the rental property. It’s not exactly a walk in the park to have rent payments coming into your bank account every month. What you need is an iron-clad contract that will protect your assets and investments.
You might want to look into commercial rent recovery services for your property. This will protect your rental property against rent arrears. Under rent recovery, a landlord can take control of the tenant’s goods and sell them for a profit. That should cover the rent that was not paid to you. But you must give the tenant at least seven days of notice before this is enforced.
You need to maintain your commercial property. Many tenants will demand that the space be in tip-top shape before they sign the lease. Depending on your contract, you will be responsible for the repairs and replacements in the property even when there is a tenant there. If the contract stipulates that the tenant is responsible for the repairs, then you still have to routinely check what’s done with your property. Make sure that the tenant is not DIY-ing things. Only a professional should do repairs on your property.
Access to Property
Under the “quiet enjoyment” stipulation, tenants can enjoy their rented space as if it is their own. Landlords cannot force entry into these spaces even if you own them. You must be granted permission and access by the tenant.
Yes, this stipulation works even if it’s for routine inspection such as a possible gas or plumbing leak. The law states that landlords cannot enter the rented space without permission from the tenant. If it is an emergency such as a fire or water damage, you can forcibly enter the room. If it’s not, you need to take the tenant to court if they still don’t want to give you access to the space.
Wear and Tear
What is wear and tear anyway? If the tenant has been with you for years, there’s a good chance that the rented space has been altered. So where do you stand as a landlord? Should the tenant strip the walls off the wallpaper? Should they repaint the walls to the original color? Should they remove the fixtures? What can the tenant take and not take?
Generally speaking, any permanent fixtures in the room should not be removed by the tenant. Even if they are the one who paid for such fixtures, these cannot be removed unless the landlord says so. As for the rest of the room, the landlord can require the tenant to get the room back to its original form.
The landlord will ask the tenant for a two-month deposit at the beginning. Deposits are for the protection of the landlord’s rights and properties. If there’s something that needs to be fixed in the property after the tenant’s contract is up, the landlord can use that security deposit to cover the cost. But if there are no repairs or replacements needed after the contract is finished, the landlord must give back the security deposit to the tenant.
Build a good relationship with your tenants, and you’ll never have to worry about these things. Also, make sure that your contract is iron-clad and that the tenants understand and agree to it. Rental properties may be a bit of work, but they are still a worthy investment.