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With businesses on the move in Charlotte, you might have a knock on your door soon. 38% of businesses that relocate each year are corporations, and an even larger 44% are small businesses. If your property holds the key amenities they seek, they'll want to call your space home.
But remember, securing great tenants is half the battle. Making sure these tenants uphold their lease agreements is a game-changer. Lease enforcement is a vital part of maintaining harmony within your property, and it calls for smart strategies.
We have some valuable tips to make this aspect of commercial property management a breeze. Keep reading-you're about to dive into an informative journey that paves the way to success in your property management career.
Clear Lease Terms
The cornerstone of any tenant-landlord relationship is the lease agreement. A proper lease agreement sets expectations and provides guidelines that both parties must follow. Clarity in the document's wording ensures fairness and leaves less room for misinterpretation.
For example, instead of stating, "Tenant shall maintain the security of the premises," your lease agreement could be more specific. Say, "The tenant must lock all windows and doors when the premises are empty."
Know Who to Hold Accountable
By involving every tenant, co-signer, and occupant, there's transparency from the beginning. With everyone's name and signatures on the document, they're aware of their responsibilities and are more inclined to adhere to the rules. Each person will know what is expected of them, making your life as a property manager much easier.
A comprehensive lease agreement removes any potential confusion over who is responsible for rent payments, property maintenance, or other lease terms. Additionally, it provides a solid legal foundation if any issues arise in the future.
Risk Management for Property Managers
In the face of a lease agreement breach, risk management should be prompt and professional. Start with reminders via a friendly conversation or an official letter.
If this doesn't resolve the issue, consult your attorney. They can assist you with taking the next steps, such as forfeiture of lease.
The Threat of Malicious Intent
Sadly, not all lease violations come from genuine mistakes. Spot malicious intent early on with frequent check-ins.
Regular property inspections can encourage lease compliance. If tenants are aware that you'll be checking for damage or lease violations regularly, they're more likely to adhere to the terms of the lease.
It's a good idea to include inspection frequencies in the lease. This practice helps tenants feel more secure, as they know their privacy isn't being encroached upon randomly. Additionally, it builds trust and safeguards the interests of both parties.
Mastering Lease Enforcement
Managing commercial properties in the Charlotte Metro area doesn't need to be a constant struggle with lease enforcement. If you set up clear lease terms, spot malicious intent, and have a well-defined process for risk management, you're setting the stage for success.
Remember that it's okay to ask for help. We have more than two decades of experience in property management and are ready to assist you in ensuring lease compliance. Contact PMI Charlotte Metro if you need support.
