Money in the real estate industry is not all there is. Just because the deal has been closed doesn't mean everything was a smooth flow. May you be a landlord or a tenant, you can face challenges in between a negotiation in one way or another. So, just before you get some headache during actual deals, here are 10 top four pain points you need to be aware of.
Finding the right tenant to seal the deal with
Closing a leasing deal sounds easy but it doesn't happen in just one click. The landlord shouldn't just settle with anyone. A tenant with a strong business and an established account history is what the landlord might be considering as the right tenant.
The last occupancy was a mess
According to Ezine, one of the pain points during a lease is when the last tenant left the property in a mess without considering the next user. Worst, the landlord is not going to do something with it until he finds a new tenant.
Properties available for leasing have flooded
This spells out "competition" and both the tenant and the landlord want it to be a healthy one. It would be very challenging already for the landlord to promote his property above all else. But the landlord wouldn't be the only one suffering this competition but the tenant as well. Commercial Real Estate says too many vacancies available for leasing poses a challenge not just to the landlord but also to the tenant.
The landlord demands a higher rate on rent
The article "Pain Points in Leasing Commercial and Retail Property" shares that another problem during leasing deal is when the landlord wants to give the tenant a high starting rent. No renter wants to be asked a big amount in this kind of economic state. In fact, a renter wants to cut the rental cost as much as he could just to save. So, if the landlord has a high asking price for the rent, he might also have difficulties in attracting the right tenant.
