When it comes down to it, commercial property owners have a lot of reading to do. Unfortunately, none of it is relaxing-at-the-beach reading. This is details-oriented, your-investment-depends-on-it reading.

Today we’re going to look at 6 things property owners should be reading if they want to stay ahead of the game.

1. Leases

A lease on a property is a legal contract, no different from any other business contract. If the terms of the lease are not met, you can take legal action against the tenant.

It’s easy to sign a lease, file it away, and then forget about it. But you should be familiar enough with the lease that you can remember essential details as you deal with your tenant. Penalties for late rental payments, arrangements regarding repairs and utilities, and lease terms and expiration dates should all be readily available.

2. Personal Guarantees

Usually written into leases, personal guarantees ensure that the company’s directors are personally responsible for following the terms of the lease. Commercial property owners should read the personal guarantees often enough to be very familiar with them.

3. Appraisals

When you receive an appraisal, it can be very tempting to skip all the verbiage and explanations and turn to the end where you’ll find the final dollar figure. That’s what you’re after, right?

Actually, appraisals contain a gold mine of information that can help you with pricing, marketing, business strategy, and more.

4. Accounting Statements

Commercial property owners should be reading accounting statements that deal with income, expenses, GST, and any other measure that affects their properties.

5. Property Inspections

Like appraisals, property inspections contain valuable information, and commercial property owners should read their inspection reports carefully. Inspections can help you know what kind of preventative maintenance should be done on your properties so you can avoid emergencies later on. They can also help you to properly budget for upcoming expenses, like the replacement of an old hot water heater or roof.

6. Lease Applications

You can learn a lot about potential lessee’s application, so it’s important to read all of your applications carefully. The information in the applications will help you to know if the business is a good fit with your property and the area.

Property Management Inner West

Instead of reading all of these documents, however, you could delegate that work to your property management company. They can keep track of the details of your leases, accounting statements, appraisals and inspections, and all of your lease applications.

At Nutshell, it’s our job to stay on top of the details of our clients’ properties, leaving them time to do what they do best. Instead of reading property inspections, you can go out and work on your next investment. To learn more about Nutshell’s property management and leasing services, contact us today.

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