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Problems with commercial tenants
Commercial tenant problems generally center around financial issues.
A tenant going through bankruptcy or corporate reorganization may
be unable to pay rent – and you, the landlord, may be unable to
collect lost rent if the company goes bankrupt. In addition, failing
business can discourage good tenants from moving in. With commercial
leases, many experts believe that a vacancy is better than a problem
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Getting successful businesses
Successful business tenants will be attracted to properties providing
more space, better parking, better location for their specific business,
and/or lower rent. Expanding franchises can provide new tenant opportunities,
as well as business similar to the type of business tenant already
located in your building.
Depending on your needs,
you may select a large company because they offer large training
programs and many services. Generally, you will pay for these benefits
through your commission structure - the lower the split, the more
services are offered. A boutique offers the distinct advantage of
more individualized training, but on a smaller scale with less services
offered to you. However, boutiques generally offer a highis commission
split expecting you to do more on your own. It is up to you to weigh
the value of what is being offered and the type of training/mentoring
you think you need and make your decision accordingly.
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