Do you own an industrial property for investment? One of the perks of being a landlord is that you are able to draw in rental income every month. However, being a landlord also comes with responsibility. Not only do you need to take care of your property, but you also have a responsibility to take care of your tenants. Establishing a good landlord-tenant relationship will go a long way in ensuring that your industrial property investment turns out to be a fruitful one.
Here’s what you need to consider.
1. Have a thorough tenancy agreement
The tenancy agreement defines the terms for the lease of your industrial unit. It is important to have a thorough and detailed lease so that the terms and expectations from for both the landlord and tenant are clearly spelled out from the beginning. This will prevent any misunderstanding from arising between both parties.
Important details that should be in the tenancy agreement include the lease duration, rental amount payable, security deposit, permitted use of the unit and more.
2. Know your responsibilities
As a landlord, you would usually bear the cost of maintenance and service fees. This may cover general repairs and maintenance, facilities management fees, fire insurance and security services. While the tenant may be required to maintain the general upkeep of the interior of the unit, you need to ensure that your unit complies with the relevant building codes, electrical safety or fire safety standards.
Always be on hand to assist your tenants so that any problems which arise are resolved quickly. For example, should any repairs be required or defects need to be rectified, attending to these promptly will ensure that your tenant is inconvenienced for not too long and does not disrupt business operations.
3. Fostering good relationships
Good relationships are important in every aspect of life, whether it is with your family, friends, colleagues, business associates and more. When you approach your tenant for discussions such as for lease renewal or to resolve any disputes, remember to remain cordial and treat each other with respect. It’s always good to have open communication in these matters. During challenging times such as during a recession or the current pandemic, it may be a good idea to proactively engage with your tenants so that you can understand their needs.
In the long run, having a “good quality” tenant is ideal. Screening your tenants – such as selecting a tenant with an established business in a stable industry and with a track record of making timely payments – will make your job as a landlord much easier.