Investment Property Owners - Horror Stories

Have you ever heard the horror stories from property owners/ investment owners? Horror stories include the bad tenants they couldn’t get rid of, the damage that was done to their office building, shopping center, apartment, the mess that was left, the tenant that never paid rent on time, the tenant that always complained, the tenant that was a huge pain in the rear end, etc. We’ve all probably heard a horror story at least once or twice in our lifetime and this is the main reason why many of us – at least one point in time at least – not that interested in buying commercial investment real estate, because of all the headaches we thought that it would entail.

Well, I’ve got good news. Most of the time when you would hear these horror stories, they could have been prevented. That’s right, they could have been prevented. 99% of the horror stories that you have heard about bad tenants, bad properties, bad situations, etc., could have been prevented. What I’m going to share with you now is the formula for preventing them and at the same time, give you an idea of how to select the very best tenant for your commercial investment property. As I’ve said, the key to short and long-term profits is management. They key to a hassle-free property is tenant selection. So, having said all that, if you were to boil it down to one sentence that is of utmost importance to the commercial investment property owner, here it is.

Take your time and do a good and thorough job of tenant selection. Sounds easy, doesn’t it? Sounds like I’m talking about something that’s pretty much common sense, right? Well, you would be surprised how many owners simply put the first warm body that walks in the door in their office space, retail space, or apartment property. And, on top of that you would be surprised how many do not do any kind of checking: background, references, credit check, etc. Hey, they’re just happy to get their space or apartment leased. Why go through all of that hassle? It takes time, costs money, and they seem like “good people”. So, I think I’m going to rent my commercial investment property to them. Bad thinking.

Investment Property Owners - Horror Stories