Protecting Your Commercial Real Estate Property

 Posted on December 00, 0000 in Commercial Real Estate

Commercial real estate owners and investors take a great deal of risk when they assume ownership of a property. That risk is even further heightened when they rent out their property to tenants. Flood, fire, property damage, and unpaid rent are just a few of the common issues that you may face. Thankfully, there are ways to protect yourself from financial loss. The following information explains further.

Natural and Unpreventable Disaster

Lightning, flood, fire, and other natural or unpreventable disasters can cause significant loss to your property. Further, the tenant may be released from any liability in such instances. There are exceptions, of course. For example, if the tenant intentionally set fire to your property, then you may be able to hold them responsible for any damages incurred. Yet, even this is not a fail-safe way to ensure you receive compensation for your losses. As such, every landlord should carry the most comprehensive real estate insurance plan possible. Some policies may even be able to provide you protection, should a tenant injure themselves on your property that you might have otherwise been held liable for.

Tenant Non-Payment, Damage, and Disputes

While most landlords carefully vet their tenants, you cannot eliminate all possible risks. A tenant may fall on hard times and be unable to pay the rent. Sympathetic as you might be to their plight, this can put your financial security at risk. Alternatively, a tenant may damage the building, or they may file a dispute against you for what they perceive to be a breach of contract. All of these risks, and more, can be mitigated through safeguards.

A clear, concise, and legally binding written contract offers more protection in court than a verbal one. Documentation (photographs, written files, etc.) that is date and time stamped can serve as proof of the property's condition prior to the tenant's move-in. Regular walk-throughs often encourage tenants to keep the property in good repair, and a security deposit can provide you with an extra layer of protection, should any damages occur.

When Bad Tenants Happen to You

Many landlords believe it is not a matter of “if” a bad tenant comes along, but when. Be prepared by knowing how to handle breaches of contract, damage to property, and other common tenant issues. Further, if you need assistance with litigation, either as a protective measure against a suit from a tenant, or to help you recover losses that were caused by a tenant, know where to turn.

At Lindell Tessitore P.C., we work with a variety of clients in a wide range of commercial real estate issues. Dedicated and experienced, our firm has an in-depth understanding of the tenant-client relationship. We can represent you in litigation, negotiation matters, and we can even help you draft a contract that provides protection. Schedule your consultation with our Naperville commercial real estate attorneys today and ask how we can help with your situation. Call 630-778-3818.

Sources:

http://www.fosters.com/news/20161020/fire-damages-wolfeboro-commercial-building

http://www.investopedia.com/financial-edge/1011/top-5-ways-to-protect-yourself-against-problem-renters.aspx