As a commercial property owner, you may not always see eye to eye with your tenants, but one thing is certain: You're basically in this together. For as long as your lease agreement lasts, you need to view your tenants as a partner, because they are vital to your ongoing financial and business success just as you are to theirs.
There are a number of reasons why this is the case, but first and foremost is that when you view them as a part of your success, you are more likely to have a good relationship with them, according to Performance Property Advisory. When you have a good relationship, tenants are less likely to look elsewhere at the end of a lease, meaning you can reduce the risk of a costly (and potentially prolonged) vacancy, while also keeping the cash flow strong.
When tenants are less likely to want to move on at the expiration of your current lease agreement, they are also more likely to work with you on a new contract that works for both sides. Although you may have to sacrifice a bit of rental income in some cases, you need to remember that the trade-off for the peace of mind you get from a good tenant who's generally happy with the agreement can be just as valuable.
Of course, a good owner-tenant relationship doesn't necessarily happen overnight, and it's something you will both need to work at on an ongoing basis to get it right, according to CREXi. In general, being hands-on with tenant needs is a good way to get the ball rolling here, but that also means not getting overly involved in a tenant's dealings.
A good landlord is seen when they're needed but not heard unless a problem arises, and if you can set that kind of expectation with your tenants, the principle becomes a two-way street: You can enjoy the consistent income without worrying that your tenants are falling short of their own duties.
When you're looking to buy a commercial property, the experts at Ray White Surfers Paradise can help set you up for success. We've closed countless sales and forged lasting relationships with commercial investors, and would love to do the same alongside you. Give us a call today to find out how we can help expand your portfolio.