The pandemic was really an unexpected turn of events especially standing in the 21st century. It caused the loss of jobs of many around the world along with global lockdowns for months on end to protect lives. This brought a heavy toll on businesses and also the commercial real estate industry. Unable to complete their rental agreements, many businesses decided to give up their rent/lease agreement and stop their in-person business operations.
Many property owners around the world wanted to help their tenants but just did not know how; if you are one of such property owners, keep reading because this article will teach you how you can help your tenants at times of an emergency, be it personal, local, national, or global in the future. You will also learn how to remain profitable while helping your tenants and ensure that your commercial real estate business does not fall flat due to the changing times and global events. So, how can you help? Let’s learn!
How You As A Landlord Can Help Your Tenants During Emergencies In The Future
One of the best ways you can help your tenants during emergencies right now or in the future is by reducing the rent of your commercial real estate for a temporary period. This tip about rent concessions will help you in many ways; firstly, it will encourage your tenants to stay at your property and continue their lease/rent even during emergencies. This will also help you stay profitable even during any emergency. Even if the profit margins are really low, it is always better than having an empty property, where you have to find new tenants again when the emergency is cleared.
Other than that, this strategy is useful even when an emergency might not be there. The real estate market fluctuates in terms of pricing and value. When the market inevitably dips in the future, you have to be able to adapt yourself to the changing market to ensure that you can maintain a sustainable real estate business while being profitable. When the markets bounce back again, you can get back to your original rental agreements, but not adapting to the changing market will only pull you behind and cause many problems in your commercial real estate business front.
As the world is finally coming to grasp and slowly overcoming the debilitating impact of the COVID-19 pandemic, it is crucial to always have the lessons that were learned during these trying times to ensure that the future does not create such tragedies again. In case such emergencies do come again in the future, it is essential for businesses, especially the real estate business, to be understanding and mold their practices as per the needs of the hour. That is one of the only ways to survive and flourish at times of emergency.