Many Texas entrepreneurs see great opportunities when buying occupied commercial property. With tenants already present, a new landlord does not have to worry about attracting new tenants and can start collecting rental money once the purchase is complete. Still, buying occupied commercial property could produce some unforeseen complications if a new landlord does not engage with tenants early on.
When tenants learn that a new owner has taken over, it can provoke some concern or even anxiety about what the new owner will do in terms of rental agreements and fees. It may even produce legal conflict if tenants act against new rental policies that they are not aware of. For these reasons, a new owner should consider dealing with the concerns of tenants as soon as possible.
Meeting with tenants
According to the Motley Fool, new property owners should set up a meeting with tenants not long after purchasing the property. This presents the new landlord with an opportunity to become acquainted with the tenants. The new owner can describe any changes in rental policy and explain who to contact if a tenant has need of emergency repairs. If the owner installs a new property manager, the owner can provide the tenants with the manager’s contact information.
A meeting with tenants is also a good opportunity to learn how happy they are renting on the property. This is important if the new owner wants to make long term plans for the property. For instance, a new owner may buy a property where a tenant runs a retail outlet. However, the tenant may decide to leave once the lease is up, depriving the owner of further rental revenue unless the owner secures a new tenant.
The Motley Fool explains that an entrepreneur may want to meet with tenants before buying the property to learn how they feel about renting the property for the foreseeable future. If a tenant plans to leave the property soon, it leaves the new owner with the task of attracting new tenants or adapting the property for a different use. Some entrepreneurs and landlords prefer to learn about the intentions of tenants before making a purchase.