It should come as no surprise that Florida is open for business. Within the first quarter of 2024, close to 164,000 businesses opened in the state. Since Orlando is one of the state's most popular cities for living, working, and visiting, this spells welcome news to commercial property owners in the city.
However, before you hand over the keys to your commercial property, you must know what you're getting into. Being a commercial property landlord comes with rewards but also many risks.
Our short guide will share a few essential tips that Orlando commercial property owners must know.
Buy Insurance First
Your first step should be to invest in commercial property insurance. This will help cover you from paying any compensation in case of liability. It can cover the costs of repairing any part of the property's infrastructure.
You might choose to offer a fully furnished property to your tenants. In such a case, insurance can cover the costs of repairing or replacing any damaged furniture. Your tenants will feel at ease if they know you've invested in insurance before renting out your property.
You can also add a commercial property floater to protect any goods that aren't stored on the premises.
Collect Rent on Time
The biggest challenge you'll have as a commercial property owner is receiving your earnings on time. ROI for landlords often doesn't factor in untimely payments.
If you have a tenant who's negligent with your payments, this can cause you to get into a serious financial liability. The solution is to offer a variety of rent collection options.
In addition to your security deposit, you may wish to charge the first month's rent on time. This can filter out any tenants who don't have a steady cash flow.
Hire a Lawyer
Before signing the lease agreement, have a lawyer review it. A real estate lawyer will know your legal obligations as a commercial property landlord. They'll ensure that the lease agreement outlines the responsibilities of the landlord and tenants.
Lawyers will assist you in case of any dispute. They're also effective if you have issues with collecting additional fees, enforcing lease agreements, and suing your tenants if needed. It's something most landlords don't want to think about, but it's a necessity for running a successful business.
Hire a Property Manager
The final tip is to hire a commercial property manager. They can handle most of the tasks for you. This allows you to be more hands-off and eases your burden.
Property managers can help first-time commercial property owners as well as seasoned landlords.
Commercial Property Owners Can Win
Now you know the essential tips for commercial property owners in Orlando. Make sure you follow these guidelines before venturing into commercial real estate management.
Your best bet is to reach out to PMI Property Alliance. We've served Orlando commercial property owners like you and have received many positive testimonials.
The next step is to contact us to schedule a call. We'll be glad to answer any questions you have.
