Being a first-time commercial property owner can be a bit overwhelming. After all, owning commercial property is much different from owning personal property.

Instead of learning the hard way (through often-costly mistakes), take our advice and do the following 10 things.

1. Develop a Clear, Fool-Proof Lease

The lease you use with your future tenants will lay out all the rules, policies, and deadlines that will establish your working relationship. If you develop a high-quality lease, your relationships with tenants have a much better chance of running smoothly.

2. Create a System for Paperwork

Commercial property management requires lots of paperwork: taxes, leases, financial statements, government compliance, and more. You’ll save yourself time and headaches in the long run if your paperwork is organised and easily accessible.

3. Learn as Much as You Can

Reading books, taking courses, and spending time with mentors will help you to be prepared for situations you might face as a commercial property owner. You can even listen to podcasts and read property management blogs to get to know the ins and outs of your investment.

4. Create Policies and Don’t Deviate

Tenants seem to have a knack for knowing when landlords make up rules on the spot, so create a written policy and stick to it. Ensure your tenants have a copy of your written policies. It can be tempting to give in on some of your policies, especially if you’ve developed a friendship with your tenant. Stay true to your policies, however. Life will be easier in the long run.

5. Develop a Maintenance Schedule

When you have a quality product, you attract quality tenants. When it comes to commercial property, the way to consistently offer a quality product is to keep up with your maintenance and run a quality business. Fix repairs as quickly as possible, and take care of seasonal maintenance on a regularly scheduled basis.

6. Set Office Hours

Just because you’re a landlord doesn’t mean you have to be on call 24 hours a day. This is especially true of commercial property owners because your tenants are businesses, and businesses are generally open during business hours. Reinforce your office hours by being prompt about returning phone calls you receive during those hours.

7. Always Charge a Late Fee

It sounds harsh, but if your lease says there will be a late fee when rent is paid late, then you should charge a late fee, no matter what the excuse is. When your tenants know they’ll be charged a late fee, they make rent paying a priority, and they force themselves to be organised enough to pay rent on time.

8. Set Up a Rent Collection System

Right from the start, set up a rent collection system that works for you and is convenient for your tenants as well. The simpler this process is, the fewer excuses you’ll hear about late rent.

9. Create a Maintenance Records System

Did you already have the furnace repaired this year? Who was it that came and flushed out the rain gutters? You can access this information quickly and easily if you’ve set up a system for keeping track of your maintenance records.

10. Find the Best Property Management Marrickville Has to Offer

You can do all of the things mentioned in the previous nine suggestions, or you can work with a stellar property management company in Sydney’s Inner West. A property management company can take care of leases, rent collection, maintenance, late fees, and financial statements.

To learn more about our property management services in Sydney’s Inner West, contact us at Nutshell.

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