The commercial-landlord relationship can differ from a residential one due to its complexities. While you may have invested in commercial real estate (CRE) due to its benefits, you may conflict with your tenants.
Below are four causes of such disputes:
1. Late payment of rent
A tenant may fail to make monthly rent payments or respond to your warnings, resulting in disputes. While it’s understandable a business may be struggling, the owner should do their best to avoid breaching the rental agreement they signed.
2. Property damage
Undeniably, you want your commercial property to be in good condition to protect its value. Thus, a tenant damaging it can lead to conflicts. It’s crucial to have a maintenance clause in your agreement that discusses when a tenant may be liable for a repair. This can encourage them to be cautious with their actions. And should damage occur, they will know what’s expected of them, reducing the chances of disputes.
3. Property maintenance
Your tenants may conflict with you if they believe you are not maintaining the property as required. The property’s condition plays an integral part in attracting their clients. Thus, they may have an issue when it’s not well-maintained despite paying service fees.
If your tenants complain about maintenance, you should follow up with the appropriate team promptly, as such an issue can result in the loss of tenants.
4. Renewal disagreements
If you are leasing your commercial property to tenants, you may be in dispute with them during renewal. Raising the rent and including new terms they deem unfavorable are examples of factors that can contribute to this conflict.
If you have a dispute with a California tenant, you should get legal help to resolve the matter sooner.