The commercial properties are a profitable investment as they can be a steady source of income. A lot of people invest in rental properties because it seems like an easy way to earn money. Before you decide to invest in a rental property it is important to understand the responsibilities that come with it. If landlords are unable to fulfill their responsibilities they will not be able to succeed in the real estate industry.
Here are a few basic landlord responsibilities that come with investing in rental properties.
Complying with building codes:
There are certain health and safety codes that commercial properties have to abide by. The landlords are responsible for the safety of the occupants so it is important that they make the commercial property a safe place for the occupants.
The landlord should be responsible for paying the commercial gas safety certificate cost along with other safety certificates. The compliance codes can change with time so the landlords should keep the building up-to-date otherwise they can face some serious penalties.
Negotiating a lease agreement:
A landlord needs to earn the trust of the tenants as it will help in creating a reliable reputation in the industry. The best way to earn a good reputation is to keep the tenants happy even at the end of the tenancy. The lease agreement should clearly state the terms of the tenancy so that there is no disagreement between the two parties.
The responsibilities and duties of both parties should be mentioned in the agreement as it will remove confusion and make the tenancy period peaceful for the tenant and the landlord. It is the landlord’s responsibility to come up with an agreement that is acceptable by the tenant and profitable for the landlord.
Keeping up with maintenance and repairs:
The responsibility of property maintenance and repairs always falls to the landlord. They are the owner of the so they have to keep it in good condition. The repairs are also the landlord’s responsibility and they are required to do them immediately especially if the damage is compromising the safety of the occupants.
If the damage is caused by the tenants then the landlord can cut the cost of repairs from the security deposit but they will have to do the repairs.
Installing safety equipment:
Commercial property is a huge investment and it is the landlord’s responsibility to keep the investment safe. It is important to take preventive measures that will minimize risks and ensure the safety of the property. The property should have proper fire safety equipment along with security cameras, emergency lighting, fire exits, etc.
Insurance is the perfect tool for protecting the property and commercial properties are legally required to get it. The commercial property insurance can cover damages and losses sustained by the property. But the landlord should understand the things that are not covered by property and liability insurance.
These are just of the basic responsibilities that come with owning a commercial property. Make sure that you understand the duties before committing to the role of a landlord.