Many benefits await anyone who decides to manage a Nashville commercial real estate investment. Operating a commercial rental space in Nashville means extra income while providing other businesses with a brick-and-mortar space for their operations to be successful. Overall, the key to success as a commercial property manager is to create situations that are mutually beneficial to the tenants and the property owner. Wondering how to attract good tenants and best manage your commercial investment? Keep reading for the ultimate guide on finding success as a Nashville commercial property manager.
Be Knowledgeable About the Commercial Real Estate Scene
Before committing to a Nashville real estate commercial investment, there's a lot to know to promote long-term success. From choosing the best location for commercial investments to keeping up with Nashville commercial real estate market trends, the best property managers are constantly researching and learning about the local real estate market. While getting some experienced guidance from developers, brokers, and agents is a good idea for new investors, even experienced ones are more likely to see steady profits and have fewer issues as owners, landlords, or managers.
Make Stipulation Plans for Vacancies
Inevitably, tenants won't occupy the space forever, so property managers and landlords should have a backup plan to deal with vacancies. Finding new renters for commercial spaces can be more challenging and take more time than filling residential spaces.
People always need a place to call home, but not everyone has the financial resources or desire to start a business in Nashville. Have a backup fund to cover lost rents and a real estate agent on board with updated property info should an unexpected vacancy arise.
Have a Detailed and Legal Lease
Don't get shortchanged or leave room open for confusion in commercial tenant leases. Inclusions should be both legal and fair for both tenants and landlords. Online programs can generate leases and software management applications to keep things on track. However, commercial property managers will want to have a real estate lawyer on their team to verify the legality of any leases before having tenants sign them.
Stay on Top of Commercial Property Maintenance
Depending on how the lease is written up, the property's tenant may have specific responsibilities for upkeep, especially concerning the cleanliness of the interiors. However, in general, the landlord or property management company will be liable for maintenance and repairs of the building's structural aspects.
In situations where multiple tenants are present, there may also be common areas like parking lots or garages that require upkeep. Happy tenants tend to stick around longer if essential repairs and maintenance are handled professionally and quickly. There are other benefits to doing so beyond tenant retention, including:
- Lowering maintenance costs
- Preventing minor issues from becoming more extensive and expensive
- Keeping the property looking attractive
- Helping maintain property values
- Preventing injuries that could result in legal action
Reputation is everything in commercial real estate property management, so be sure that reputation stays solid amid the community.
Meet or Exceed All Health & Safety Codes
While specific operational permits and meeting codes are up to the tenant to maintain, property managers must make sure essentials are up to Nashville's current code requirements upon a tenant moving in. This includes fire and safety regulations, eliminating lead paint or asbestos, and having wiring up to date. Commercial property owners and managers can be fined for failure to follow safety protocols in some situations.
Invest in Solid Building Security
Tenants will be more eager to rent and stay in a facility with adequate security that may range from monitored cameras, sensors, lighting and alarm equipment to 24/7 security or both. Ensure that window and door locks work, as well. Solid security measures protect the building whether it's occupied or not and can qualify owners for insurance discounts.
Be Choosy About Tenants When Possible
In addition to doing due diligence in checking on applicants concerning their financial ability to pay and that they pass a trustworthy background check try to find agreeable tenants. If they are reasonable in their tenant expectations, landlords and property managers will be more motivated to meet their needs. Mutual respect between landlords and tenants is a significant key to success in commercial property investments.
Go The Extra Mile For Tenants
There may be a tenant who always pays on time who suddenly needs an extra few days occasionally. Establish a stronger, more trusting relationship by waiving a late fee from time to time or making a minor repair that may not be covered under their lease. This goes a long way to creating a successful commercial investment property.
Commercial Property Management Software for Optimal Oversight
Managing a commercial property involves a lot of information. Keeping up with all the facts and figures, tenant statuses, and other issues can be overwhelming, even for professional management companies. This is where the benefits of investing in technology play a role in successful ventures and smooth operations.
Commercial property management software is superior to manually tracking data, as it records, stores, and sends notifications to management and landlords about critical data. Some key statistics these applications can monitor so informed decisions can be made include:
- Current rents
- Income to profit margins
- Types of occupants and businesses in properties
- Rental turnover rates
- Standing with local and federal regulations and codes
- Taking in and tracking work orders for maintenance
- Payments due to property staff and contractors
This is just the tip of the iceberg concerning what a property management system can do. It can allow for online bill pay, help with marketing the property and let renters communicate directly with landlords and management.
Manage Nashville Commercial Real Estate Like An Expert
Even if you aren't an expert in commercial real estate (and even if you are), don't go at it alone! A real estate professional with experience and knowledge can assist with making smart investments and even recommend local property management firms and brokers to help operate your investments.
The Ashton Real Estate Group of RE/MAX Advantage
The #1 RE/MAX team in the World!