Since the average rent in Beverly Hills is $229 per square foot of commercial property, investing in business real estate is a great way to diversify your California portfolio.
However, being a successful commercial landlord means implementing good lease compliance strategies. Read on to learn the ins and outs of lease enforcement to ensure that you can get the rent you're due legally and effectively.
Craft a Legally Binding Lease
Creating a commercial lease can be challenging. You need to include numerous clauses, including those for:
- Rent rates
- Payment schedules
- Penalties for late payments
- Lease type (net lease, modified net lease, gross lease, etc)
- Tenant maintenance responsibilities
- Outlining acceptable behavior on the property
- Establishing guest policies
- Lease duration
- Renewal options
- Eviction policies
If you word any of the clauses incorrectly, you leave holes in the lease. This could slap you in a lawsuit if any unruly tenants want to split hairs.
Hiring an expert commercial property management company ensures that your lease will be legally sound. Professionals how to draft an ironclad contract before crossing their t's and dotting their i's. This means that it will be easy to enforce if any problems arise.
Maintain Clear Communication With Tenants
Good tenant management techniques can help with commercial lease enforcement. Communicating with tenants promptly and securely is one of the most important ways to manage your commercial renters. Make sure that you:
- Respond to maintenance requests quickly
- Address questions and concerns promptly
- Talk with tenants as soon as you notice a problem
- Stay transparent about penalties for breaking the lease
- Send out reminders for rent payments and other important events
- Keep a record of all digital communications
Open lines of communication make it less likely that renters will violate the lease. You don't just remind them of what they need to do. You also foster a great landlord-tenant relationship.
If you have a broad portfolio, communicating with commercial tenants can be challenging. Luckily, California property managers can help with lease compliance strategies due to easy communication.
The all-in-one dashboard used to manage tenants and send encrypted messages makes it easy for property managers to communicate with renters and get back to you, the landlord.
Inspect the Properties Regularly
Property inspections are also an important part of lease enforcement. After all, it's best to address issues before they become serious concerns.
Property managers will help you send inspection crews to your commercial real estate. Ideally, this will happen once a year or so.
They can also send in maintenance teams. Experts have pre-existing contracts with these teams so they can repair any potential problems fast. You won't need to find your own crews and vet them.
Property management companies also provide property management tips that help you understand what to do after finding a violation.
Implement Top Lease Enforcement Strategies in Beverly Hills
Now that you know some lease enforcement tips for your California commercial property, it's time to get started.
PMI Beverly Hills is excited to tell you how much your investment is worth. We'll give you tips and pointers on how to maximize your rental income with real estate lease enforcement, so contact us for a free property valuation today.
