We’ve all heard the passed-along stories and anecdotes. Or, maybe, we’ve been in the position ourselves. You rent out your property to a tenant who looks good on paper. No red flags during the interview and the first month’s rent and security deposit checks cashed right on time. A few months, or maybe years in, though and you’re dealing with late or non-payments, refusal to allow property inspections, police calls for disturbances and a potentially demolished rental property.
While your first reaction may be to say this only happens in residential properties so thank goodness I’m in commercial real estate, not so fast. CRE property owners can face similar if not identical issues from the “tenant from hell.” While the results can be devastating, even with a decent insurance policy in place, they are far from unavoidable. Using a quality property management software solution, such as those provided by Quarem, can help save you headaches and dollars when it comes to who you entrust to keep your assets safe.
I Thought You Ran That Background Check…
As the saying goes, an ounce of prevention is worth a pound of cure. When it comes to your CRE portfolio, proper tenant vetting and due diligence are worth its weight in gold. While you probably have portfolio-wide procedures for checking tenants, lease administration software can create an automated system of checklists for every new lease implementation, eliminating the potential for human error. Data results such as credit scores, references, and initial applications are stored in a centralized location, making for easy access in case the need arises in the future.
Analytics, Trends, and Quarterly Reviews…Oh, My!
While on the topic of prevention, Quarem Access and Quarem Vantage’s sophisticated reporting modules can help property managers catch problematic trends in tenant quality before they escalate to outright liabilities. By running and reviewing monthly reports, specifically targeted to lease aspects such as payment date and method, and by logging individual contact and history with individual tenants, CRE professionals can catch issues earlier. Also, in certain situations ongoing monitoring of individual company health may be possible, providing detailed insight into your tenants’ long-term business plan and corresponding worthiness.
Not Just Digging a Bigger Hole
With Quarem Lease Administration Software, CRE professionals can rest assured knowing that their business and customer portfolios are safe. “They” say knowledge is power and Quarem helps property managers manage, track and predict potential problem tenants long before their behavior becomes a liability. With Quarem’s predictive analysis and reporting on key factors of leases and individual properties, owners will have comfort that, from start to finish, their rentals are protected from problem clients, and when good clients go bad, Quarem will be there to help spot the issue. Give Quarem a call today and find out how you can avoid having your personal “tenant from hell” story to share.