The recovery from the pandemic-fueled shift to working from home has been slow in Reno. At the beginning of 2023, we saw a slight uptick in commercial real estate vacancies.
If you're facing a rising vacancy rate, the rental income you have becomes even more important. What if your current tenants aren't paying rent on time or in full?
A smooth and streamlined rent collection process can protect your commercial property investment portfolio. If you're struggling to collect rent from your Reno commercial tenants, you're in the right place.
Read on to learn everything you need to know about commercial rent collection in Reno.
Clear Lease Language
Good rent collection practices begin with clear expectations and a solid ground for legal repercussions. In other words, you need to set the standard for rent collection by creating a cohesive lease with concise, direct language.
In your commercial lease, make sure to state:
- The rent amount
- The rent due date
- The point at which rent is late
- The fine for late rent
Providing wiggle room before rent is considered late can improve rent collection. If the rent is due on the first of every month, consider an "extension" period of three to five days. This can allow commercial tenants to get their rent in order and incentivize them to pay it on time to avoid the late fee.
Commercial Rent Collection Regulation
Residential property owners in Reno have to contend with quite a bit of legislation when it comes to rent collection. Commercial tenant rights as guaranteed by Reno law aren't quite as extensive.
In the worst-case scenario, the threat of a late fee isn't enough to incentivize commercial tenants to pay rent on time. You will also need to prepare a plan in the event that rent delinquency becomes egregious. If you intend to bar your commercial tenants from the property by changing the locks, you must provide three days' written notice before going through with it.
Property Management Assistance
If you're looking for a hands-off property investment experience, you'll need to partner with commercial property managers. Your property managers can review your current lease language and improve it. They can also handle tenant relations and rent collection.
PMI offers tenants an easy-to-use online portal for everything from rent payments to maintenance requests. Tenants can set up automatic payments so they never forget another rent collection date again.
Need Help With Commercial Rent Collection in Reno?
The Reno real estate market is still recovering from the pandemic, particularly in the commercial sector. Whether you're facing high turnover, high vacancies, or your commercial property is going strong, rent collection is the primary tool to protect your real estate investment.
PMI Reno has years of experience managing commercial properties in Reno. We can help you navigate this transitional time and take your investment portfolio to the next level. From marketing to maintenance to rent collection, we're here to help.
Contact us to set up a consultation and learn more about how our services can boost your ROI.
