5 Responsibilities of a Commercial Real Estate Landlord

 Posted on December 00, 0000 in Commercial Real Estate

While it is true that you can boost your income and perhaps even build a nest egg with commercial real estate (CRE) investing, those who are not equipped to handle the process risk significant financial loss. First, there is the risk of a failed return on investment - an issue that can often be mitigated using seasoned legal assistance during each step of the transaction process. Then there is the chance that you may be sued if you fail to meet your legal obligations as a landlord. What are these obligations, and how can an attorney help you meet them? Continue reading to learn more.

1. CRE Landlords Are Required to Adhere to All Local and Federal Laws

All landlords are required to follow certain local and federal laws. Commercial landlords are no exception. You cannot discriminate based upon certain criteria (race, religion, etc.). Furthermore, you must adhere to all building codes and zoning laws. Failure to meet any one of these obligations can result in serious consequences, including (but not limited to) legal recourse.

2. CRE Landlords Are Encouraged to Use Clear and Concise Contracts 

Ambiguity in a CRE contract can result in a whole host of issues, including tenant default and suit. Avoid such issues by ensuring that every aspect of your landlord-tenant contract is clear and concise. In particular, consider:

• Who will be responsible for cleaning out the leased space before the contract commences, and when it ends;
• Who will be responsible for what repairs, and to what end;
• What alterations the tenant can make (and which ones might be considered a breach of contract); and
• What is considered a timely response or request time for minor repairs.

3. Adhering to the Contract and Know Your Repair Responsibilities 

When you enter a legal contract, you are bound by it. As such, it is critical that CRE landlords only implement terms that they can meet. Moreover, ensure that your property is well-maintained, both on your end and your tenant's, as failure to do so can cause a loss in value for your property. Also, be certain that you know and understand which types of repairs typically fall under the landlord's jurisdiction (i.e. HVAC repairs, electrical repairs, etc.).

4. Minimize Your Risks and Liabilities 

Part of protecting your property is ensuring that its risk for loss is carefully mitigated. Much of this is done through the maintenance of the property, but there are other aspects that you may want to consider as well. For example, you may want to ensure that your property has a security system in place, and that all doors and windows have working locks, which can protect both you and your tenant from vandalism and theft.

5. Maintain Diverse, Comprehensive Insurance Coverage 

Even when you take all reasonable precautions to protect your property, loss can occur. Acts of God, such as fire or flood may occur. Equipment can also be both an asset and a liability for a CRE property owner. Protect your assets by ensuring you have diverse and comprehensive insurance coverage for every aspect of your CRE rental property.

Contact Our Oak Brook Commercial Real Estate Lawyers

At Lindell & Tessitore, P.C., we work hard to increase your investment company's bottom line. Able to help you through every step of the real estate transaction process, and capable of helping you manage tenancy issues, our Naperville commercial real estate lawyers are the ones to call. Schedule a personalized consultation by dialing 630-778-3818 today.

Source:

https://www.law.cornell.edu/wex/landlord-tenant_law