Many people choose to rent commercial properties because it’s a lucrative business. Although renting business properties is a way to earn money, it’s not as easy as you may have imagined. As the landlord of business property, you have a variety of responsibilities. Here are four responsibilities and duties of a landlord of a commercial rental property.
Building Code Compliance
As the landlord of a commercial property, you are responsible for complying with business codes. Business codes include the required standards for habitability, safety, and accessibility. All states and local governments enforce strict building codes. Before you can rent a commercial space or building, certain repairs need to be made. Building codes change over time, so it’s in your best interest to keep track of changes. Failure to meet the standards of business codes will result in fines and have a negative impact on your business.
Specifying the Lease Agreement Terms
You are responsible for setting clear lease agreement terms. The lease agreement should disclose what you accept responsibility for as a landlord and the responsibilities of the tenant. If you are a first-time commercial landlord, you need to know there is no one size fits all for lease agreements. Every rental situation is different. If you’re having trouble getting started, you should consider hiring a professional to help you draft your lease agreements. The lease agreement should include terms for who is responsible for cleaning the leased space, repairs the tenant is responsible for making, who is responsible for termite treatments and other pest control, and the wait time for repair requests.
Minimizing Risk and Liability
To continue to earn money, you need to create a preventative maintenance plan. This plan will help you stay on track with various tasks that help prevent the need for expensive repairs and replacements, such as theft and other mishaps. The maintenance plan should include a regular schedule for the locks on the doors and windows, roofing and paneling, smoke and fire alarms, cameras and security systems, and similar items and devices. As the landlord, it is your responsibility to prevent disaster. You should also have proper insurance in place.
Maintenance and Repairs
You, the landlord, are responsible for the maintenance and repair of electrical units, HVAC system, hallways and bathrooms, faucets and piping, and door and window security. If a problem occurs with any of these devices or in these locations, repairs need to be made promptly. Faulty equipment can cause fire and water damage. You are responsible for protecting your business and preventing it from sustaining damage.
There are different perks to being a landlord of a commercial property, but the rewards also come with responsibilities. You need to make sure your property is well-maintained to ensure it lasts for many years.