Gus Dahleh, a commercial real estate investor with over $50 million in commercial real estate, develops different approaches in keeping his properties and generating income while maintaining satisfied tenants
Commercial real estate management demands different strategies to ensure profit for investors and shorter vacancy periods. Every investor needs to keep track of every detail that can impact the productivity of the commercial space.
Gus Dahleh, a commercial real estate investor with over $50 million in commercial real estate, develops different approaches in keeping his properties and generating income while maintaining satisfied tenants such as Walmart, Chase Bank, AT&T, Sam's Club, etc.
Gus Dahleh modifies every strategy that best suits the market and the commercial space he is renting out. The following article will directly affect your commercial real estate management operation for the better. If you want to be an active commercial real estate investor, here is Gus Dahleh’s 7 management tips for success.
Acquire Personal Agreement
Commercial real estate not backed by corporate or any national affiliates must have a personal agreement. It is crucial to ensure that your tenant in the retail space has backing data on the balance sheet. The tenant must have sufficient assets for the personal agreement for your advantage as the investor. In any case that your tenant does not have enough resources, the personal deal will not deliver any recourse on your end. Gus Dahleh typically ensures a personal agreement is available and reliable so he can be assured his property's cash flow is secure and it is being rented to the right and capable tenants.
Reserve Enough Contingency Working Capital
Having backup finance when your commercial space goes vacant is essential. Commercial spaces have more tendency to be empty than residential properties. Many factors are affecting the possible vacancy in commercial spaces. The economy, the business, and the market are a few of the impacting elements that will lead to vacancy. Thus, the landlord will have to shoulder all the maintenance and other operating costs. Gus Dahleh, a commercial real estate magnate, always sets aside contingency funds. These funds are allocated to additional operating expenses that have potential to arise.
Execute An Agile Approach
Gus Dahleh believes that having an active approach when managing your commercial real estate will help maintain your standing in the industry and set you way ahead of your competitors. A passive approach will not leave your tenants satisfied. It is vital to have a well-maintained property and functional relationship with your tenants. Gus advises targeting your niche from the beginning and continuously striving to chase after your ideal tenants.
Monitor Sales and Tax Returns of Tenants
One way to know your tenants’ business status is by asking them how their business is going. You can assess whether or not the company your tenants are operating is thriving or at the brink of bankruptcy. If such an instance happens, you will have the time to plan for your next action when the tenant vacates the space. You will have time to look for new prospects, and in such a way, you will decrease the vacancy period of your space.
Educate Yourself to Acquire Expertise
Commercial real estate management is far from residential management. If you have no experience managing a retail space, it is best to hire someone who has the expertise to do it. Doing it yourself without the know-how will likely lead to bad management and a higher rate of vacancy. But, if you do choose to manage it yourself, it is essential to prepare yourself with the right knowledge and mentorship before diving in.
Utilize the Appropriate Technology
There are various management tools available that help businesses maintain seamless workflow, client acquisition, marketing schemes, data management, and financial valuation. If you utilize technology to your advantage, it will help you keep track of your daily transactions and effectively determine factors that influence your current profit. Gus Dahleh is a renowned shark in the real estate industry. He makes sure that his business is ahead by optimizing technological advancements that extend effectivity and efficiency. He believes that the earlier you engage with technology, the better and smarter you will be.
Effectively Manage Maintenance Expenses
Maintenance cost is hard to control and avoid. There will always be circumstances that will require you to shoulder the maintenance cost. One way to lessen these factors is by converting your tenants to triple net leases (NNN) if they are on the gross lease agreement. Your tenants will gain an advantage from such transactions, but it will also mean real estate taxes, building insurance, and maintenance are out of your hands.
Commercial real estate investing takes a lot of effort to become successful with. Putting your money in commercial properties will demand you to give your 100%. Gus Dahleh believes that evaluating every detail will help you determine the factors that will generate stability in your property and pay dividends for years to come.
About Gus Dahleh
Gus Dahleh is a successful real estate entrepreneur that accumulated many multi-million commercial properties. JP Morgan Chase, AT&T, Walmart are a few of his big tenants. He has the capabilities to turn a lost cause property into an income-generating real estate.
Gus Dahlehs abilities and expertise to guarantee secure and profitable commercial properties are excellent and eye-opening. He doesn’t wait for the things to go worse before he executes a solution. Gus Dahleh is a man of vision in the world of the real estate industry.
Learn more about Gus Dahleh here:
