It's fair to say commercial property has had a rocky few years. It suffered during COVID-19, and after that, many businesses decided they wanted to downsize their offices.
But things are now beginning to settle. Companies are recognizing the value again of commercial space, and there are some great property deals to be had.
In short, it's a wise time to start in commercial real estate in Morristown, NJ. But you need to know a few tips and tricks to make it profitable. Here are some lease management best practices to guide you.
Get to Know the Local Market
The more you know about the local market, the more it can help with your commercial property portfolio. Start by focusing on the bigger picture and economic trends shaping commercial leases.
Once you've grasped that, you can examine the local market, including tenant demographics and demand.
This information will help you make critical decisions, such as pricing and lease terms, to ensure that you continue to see high demand for your property.
Make Sure Your Lease Agreement Is Comprehensive
Don't get caught off guard by adopting generic lease terms. It may not provide the protection you need. Always take the time to create a custom and comprehensive lease agreement for any new tenants.
It will help you manage the risks of your commercial property.
These lease agreements provide more detail about issues like rent payments, fees, and maintenance responsibilities. Thus, they help manage expectations and ensure there is no confusion between parties.
Writing this in plain English is essential so it's easy to understand. Don't hide it in the small print.
Be Proactive With Tenants
Busy commercial tenants don't want to chase their landlords or worry themselves with minor property issues. Be as proactive as possible; it will help you with tenant retention.
Set yourself timescales for completing work and supply those deadlines to your tenant. If you can't resolve an issue quickly, consider proactive workarounds that could help your tenant.
Use Technology
Modern technology can help make your lease management more efficient, so use it as much as possible.
Property management software is a must-have. It automates some of your most pressing tasks, such as rent collection, maintenance requests, and tenant communications.
It's also helpful in keeping records and financial reports, which will help you make more informed decisions about future commercial real estate investments.
Prioritise Sustainability
Tenants want more than a functional commercial space. They also desire an eco-friendly building to help support their business sustainability goals.
Work with your tenant on this by discussing potential upgrades and energy-efficient measures that could benefit your tenant and help you create a more sustainable commercial building.
Lease Management: Using Best Practice to Your Advantage
Best practices in lease management involve simplifying priorities and making tasks more manageable. When you can do that, commercial rentals become more profitable, and you will have happier tenants.
Getting expert help is also a great idea.
At PMI Prime Property, we have a comprehensive suite of services to support commercial landlords in Morristown, NJ. Using our experienced team, you can make commercial property management a breeze. Find out more here.
