Cory Albert is president of Cory Albert Real Estate.
Investing in commercial real estate is a long-term commitment. When done right, it can generate income for years, even decades. But if you want your investment to perform, you have to put in the work to manage both the property and the people involved. Over the years, I’ve learned that strong relationships, smart renovations and good systems make all the difference.
Happy Tenants, Happy Landlord
Tenant retention is one of the most important elements of profitability. The longer good tenants stay, the fewer gaps you have in your rental income and the fewer transition periods with no revenue. That’s why offering good service to tenants is critical.
One of the best tools I’ve used for this is a cloud-based property management platform like Buildium or Plexflow. These features let tenants submit maintenance requests, assign urgency levels and monitor progress. Transparency is good, but what really matters is speed. Tenants want to see their requests being addressed ASAP. Delays frustrate tenants and chip away at your credibility, which is why something good enough done tomorrow is better than something perfect two weeks or a month from now.
I always keep communication steady and professional. That said, boundaries are important. For example, tenants should cover basic expenses like changing light bulbs. If you handle everything for them, you risk creating expectations that will only cause friction later.
Handle Turnover Like A Pro
Even great tenants move on. What matters is how quickly you can fill those units with qualified new tenants. That’s why you should start marketing the minute you get a notice to vacate. Ask for permission to enter the unit to take high-quality photos, then write your listing and schedule showings so there’s no downtime once the current tenant leaves. Ideally, any renovations are finished and a new tenant is ready to move in on the day the old one moves out.
Thorough tenant screening is crucial. A bad tenant can cost you far more than a month of vacancy, and prevention is cheaper than eviction. Always run credit and background checks and verify rental history. Every state or province has a regulatory body that tracks landlord-tenant disputes, so check those records, too.
Renovate With Intention
Not all renovations are created equal. Some bring value, while others just burn cash. Before you commit to any updates, ask: Does this directly benefit the tenant, or will it pay for itself in higher rental rates over the long term?
Structural work—like fixing leaks, stabilizing foundations or replacing aging systems—is essential. But beware of cosmetic upgrades done for their own sake. Changing the color of a perfectly fine floor doesn’t make your property more valuable, and your tenant won’t pay more just because you swapped out the cabinets for nicer ones. Don’t get pulled into the “while we’re at it” mindset; that thinking eats your budget.
Get at least three quotes for any job, and when you do hire a contractor, I advise paying by the project, not by the hour. Paying by the project shifts the risk of underestimating onto the contractor, who will be more motivated to plan efficiently and work quickly.
Also, think about what today’s tenants expect. Since the pandemic, tenants are more likely to want things like unlimited, high-speed Wi-Fi or permission to have small dogs or cats.
Professional Help
If you own multiple units or just don’t want to deal with long lists of day-to-day tasks, hiring a property management company can be a smart move. But quality ranges widely, and a bad management company is a fast track to unhappy tenants and more headaches for you.
I always ask: Does the owner of the management company own any buildings themselves? Do they understand the investor mindset, the importance of occupancy, expenses and tenant turnover? If they’ve never had skin in the game, that’s a red flag.
Pay attention to how a management company responds to your initial inquiries. Do they reply the same day? Are their answers complete or just a few words? That’s probably how they’ll communicate with your tenants. Think of a property manager as a spokesperson for your building: If they’re rude, disorganized or absent, that reflects on you.
Managing a commercial real estate portfolio is more than just collecting rent checks. So, ask yourself: Are you building an asset that lasts? Are your tenants stable and satisfied? Are you keeping your building strong without wasting money on shiny distractions? If the answer is yes, then you’re already ahead of most.
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