In this video, Joel, Principal Broker, discusses the risks of owning a multi-tenant property. He also explains what the tenant rent typically covers and the key to making sure the property’s tenants are satisfied.
Joel discusses what can help businesses increase sales, thrive in the community, and create happy relationships with the tenants to create a lasting business relationship.
What types of risks are involved with this type of property/investment?
Some of the risks included with owning a multi-tenant property include:
- Improper property management
How important is property management?
A good property manager is essential to make sure the tenant’s needs are being taken care of, collects monthly rent payments on time, and keeps the common area and maintenance expenses to a minimum. The CAM (common area maintenance) charge paid by the tenants above the base monthly rent typically covers the expenses of the property such as insurance, maintenance costs, management fees, property taxes, etc. A good property manager that listens to the tenants, makes them feel valued and ensures that the retail center is being maintained to a higher standard.
Does property management help with attracting customers to these types of properties?
Good property management helps the curb appeal and presents an inviting appearance to the patrons and consumers that want to visit the businesses in the shopping center. In turn, this helps businesses increase sales, thrive within the community, have satisfied customers, and creates a happy relationship with the property management company. If the tenants are satisfied with the property management team, they will also be happy with the landlord, owner, and they will want to stay in the location for a longer period of time.