Commerical Tenants
Problems
with commercial tenants
Commercial tenant problems generally center around financial
issues. A tenant going through bankruptcy or corporate reorganization
may be unable to pay rent – and you, the landlord, may be
unable to collect lost rent if the company goes bankrupt. In addition,
failing business can discourage good tenants from moving in. With
commercial leases, many experts believe that a vacancy is better
than a problem tenant.
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Getting successful businesses
Successful business tenants will be attracted to properties providing
more space, better parking, better location for their specific business,
and/or lower rent. Expanding franchises can provide new tenant opportunities,
as well as business similar to the type of business tenant already
located in your building.
Depending on your needs, you may select a large company because
they offer large training programs and many services. Generally,
you will pay for these benefits through your commission structure
- the lower the split, the more services are offered. A boutique
offers the distinct advantage of more individualized training, but
on a smaller scale with less services offered to you. However, boutiques
generally offer a higher commission split expecting you to do more
on your own. It is up to you to weigh the value of what is being
offered and the type of training/mentoring you think you need and
make your decision accordingly.
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