Charlotte NC Commercial - Blog #Property ManagementCharlotte NC Commercial - Blog #Property Managementhttps://www.charlottenccommercial.com/blogs/tag/Property-ManagementFri, 17 Apr 2026 14:29:27 -0700http://zoho.com/sites/<![CDATA[The Importance Of A New Tenant Screening Process]]>https://www.charlottenccommercial.com/blogs/post/the-importance-of-a-new-tenant-screening-process

The Importance Of A New Tenant Screening Process

The property manager provides the tenant applicant with the lease application that must be filled out for the interview. A leasing agent may assist during the review process, but the final selection of tenants is ultimately the property manager and owner’s responsibility.


All leasing personnel should be informed that the company does not discriminate on the basis of an applicant’s race, sex, color, creed, or national origin.

The screening process helps determine the prospect’s desirability and verifies financial and nonfinancial qualifications. When all information has been received, the applicant’s file should be given to the property manager and/or owner for final review. Decisions made during this process are based on the following criteria:

    • Impressions created by the prospect when interviewed;
    • The prospect’s employment history if the prospect is applying for residential space; company or business history if the prospect is applying for commercial space;
    • Information gathered from verifying the prospect’s references and from the completion of a credit check;
    • Compatibility of the tenant to the property type.

When the application is approved, the property manager should prepare the lease and other appropriate documents that require the applicant’s signature. Commercial tenants will probably have an attorney review the lease, which may require a certain amount of negotiation. Upon approval, the lease is signed, and security deposits and rent payments are collected as specified in the lease.

When an applicant is disapproved, he/she should be promptly notified. If the disqualification resulted from a credit check, the law requires that the applicant be informed of this. To protect against possible litigation, rejected applications should be kept on file with complete statements about why applications were rejected.

Get Started Now
]]>Wed, 01 Apr 2026 13:14:00 -0500<![CDATA[What Is A Step-Down Rental]]>https://www.charlottenccommercial.com/blogs/post/what-is-a-step-down-rental

What Is A Step-Down Rental

Tenants understand the need for step-ups in their leases because they recognize the inevitable upward trend of costs. There is no reason for elaborate set of definitions in the lease. The lease simply needs to spell out in a schedule the applicable period and the rent to be paid during that period.

The landlord will almost never agree to a step-down rental tied into the possible deflation rather than inflation. However, there is one instance where the demand of the tenant for a step-down in the rental might be appropriate.

When a landlord has been able to get good mortgage financing for the improvement primarily because of the high credit rating of the tenant, that tenant may argue that when the initial mortgage is fully paid off, the rental should be reduced. The cash flow to the landlord will jump substantially because the debt service is eliminated and the tenant may want a share. In effect, the tenant says that since his credit standing made the mortgage possible (and consequently created desirable leverage for the owner), the tenant should benefit as well as the owner when the mortgage is paid.

Get Started Now
]]>Wed, 01 Apr 2026 13:12:00 -0500<![CDATA[Problems With Rent Free Concessions]]>https://www.charlottenccommercial.com/blogs/post/problems-with-rent-free-concessions

Problems With Rent Free Concessions

Commercial property goes in cycles from full occupancy to overbuilt with vacancies. When it has been difficult to rent, various concessions have been made to get tenants in and paying rent.


Free rent concessions have been used sometimes to help fill a building. This may have created more problems than it solved.


As an example, suppose there is a building where office space is offered at $25 a square foot on a five-year lease. The lease can be renewed for an additional five-year term at a negotiable renewal rate. To get tenants into the property, the owner gives a concession of free rent for the first two years. This may sound like an acceptable, though extreme solution, but might not be good for either the owner or the tenant.


The bookkeeping and tax preparation for these two years can be a major problem for both the tenant and the owner.


The landlord has no income from this tenant during the two-year period of the rent concession. This can create a cash flow problem for him.


The tenant’s cash flow is incredible during the first two years, since he is paying no rent at all. Then it jumps up to the $25 a square foot level for the remainder of the lease. This can cause a cash flow crisis for the tenant.


Since the property has such a severe vacancy problem that the owner considered the free rent concession in the first place, he might consider a new manager, or a sit down session with the current manager on how to solve this vacancy problem with some creative ideas other than free rent.

Get Started Now
]]>Wed, 01 Apr 2026 13:10:00 -0500<![CDATA[How To Deal With Security On Your Commercial Property]]>https://www.charlottenccommercial.com/blogs/post/how-to-deal-with-security-on-your-commercial-property

How To Deal With Security On Your Commercial Property

Commercial security involves systems and strategies designed to protect businesses and properties from threats like theft, vandalism and unauthorized access. It not only safeguards physical assets but enhances tenant satisfaction and business continuity. Effective security measures include advanced surveillance cameras, access control systems and alarm systems to insure the safety of assets, employees, and visitors.

The problem of security is a major concern of owners and managers of office buildings or other commercial properties. There are many things to check both inside and outside of a property. Particular attention must be given to the perimeter of the property, as this is where an intruder will make the first contact.

For example, an office building should be inspected thoroughly all around the exterior to search for danger spots. No area should be overlooked because entry is possible from almost any point. The age, design, and location of a building will affect perimeter security.

Older buildings can have more security problems because of the style in which they were built. Often there are street-level windows, exterior fire escapes, and operable windows. Each can increase the number of entry points that must be protected.

Every building will be different, of course. Each will have to be checked, starting at a point and going around the property to return to that point.

Here are some things that will always need to be checked carefully: 
  • Fencing. If there is a fence around the building, is it just ornamental or will it actually protect the property? Are there any vulnerable spots? If there is no fence, is it feasible to install one?
  • Loading dock. How is the dock controlled during regular operating hours? After hours? What personnel are involved? Are there procedures to control deliveries and removal of materials? Is the dock left untended at any time.
  • Windows, fire escapes, & roofs. Do any of these areas pose potential access problems? If any do, should new grates or locking devices be installed? Check on your local codes.
  • Entrances and exits. (Pedestrian and vehicular). How many entrances and exits are there? Where are they located? What kinds of locks are used? Are the locks effective and who has the keys?  What are the hours of operation of each entrance and exit? Is there any kind of alarm system to signal when a door is open? Who responds to these alarms? Would closed-circuit television (CCTV) cameras be of value in any of these locations? If CCTV is used, are the monitors always watched? If there is a parking lot or garage, are the access routes safe?
  • Guardservice. If there is a guard service, what are the guards’ assignments in regard to controlling daytime and after-hours traffic and patrolling the building’s perimeter?
  • Exterior lighting. Is there adequate lighting that can serve as a deterrent to crime? Do time clocks or light sensors control the lights?
  • Landscaping. Are there possible hiding places along routes to and from the building?
Get Started Now
]]>Mon, 02 Mar 2026 09:21:19 -0500<![CDATA[Taking Action For Overdue Rents]]>https://www.charlottenccommercial.com/blogs/post/taking-action-for-overdue-rents

Taking Action For Overdue Rents

A critical indicator of a management company’s success is their effectiveness in controlling overdue rents. A well-run property should not have chronically delinquent tenants. However, when delinquency does occur, immediate action must be taken. A list of all delinquent rents must be prepared showing all tenants who have not paid, or for those who have partially paid rents and other monies due. In addition, a delinquency report recording the manner and date of all collection attempts should be prepared.

When initial notification of the delinquency does not help, the property manager should review the lease’s termination rights and consider possible legal action against the tenant. Should a delinquent tenant suddenly vacate the premises, late charges and legal fees should be deducted from the security deposit.

Finally, if repeated notices and personal visits by the property manager fail to remedy the delinquency, the manager should contact legal counsel, research relevant state and local laws, and prepare to file eviction proceedings for nonpayment of rent.

The Legal Action
Each month, the property manager should review the delinquency report outlining all telephone calls, personal visits, notices, and other actions taken in an effort to collect the rent. This report, along with the tenant ledger, will help determine what legal action, if any, should be taken against each delinquent tenant.

Tenants who generally pay rent on time should be granted an extended grace period in which to pay. In many cases, the initiation of legal action will induce habitual late payers to remit rent monies owed; however, eviction procedures should begin immediately for tenants who are suspected of moving, as well as for those who continue to refuse to pay. Copies of the tenant’s lease and the tenant ledger should be forwarded to the attorney, who can then begin legal action.
Get Started Now
]]>Mon, 02 Mar 2026 09:20:36 -0500<![CDATA[How To Deal With High Risk Troubled Property]]>https://www.charlottenccommercial.com/blogs/post/how-to-deal-with-high-risk-troubled-property

How To Deal With High Risk Troubled Property

In any market, good or bad, there are always problem properties. Most are only troubled or problem properties because of the current ownership. Some may be neglected only because the present owner has failed to do fairly simple things that can solve the problems. Buying property and solving problems is a profit-making business.

Have you seen:

    • An empty office building.
    • An apartment house or hotel that has an excessively high level of vacancy.
    • A large tract of undeveloped land that no developer has become serious about wanting to develop.

These are examples of troubled properties.

Properties that are a definite financial burden to continue to hold but which also are unattractive properties to some prospective buyers.

The timing may be right for investors to obtain troubled property at bargain prices. The pressure on owners and lenders with troubled property to get out from under the on going burden is also high. The result is that syndicates have been formed to seek out and buy up troubled properties.

The High Risk

Knowledgeable property developers and managers (especially those familiar with empty or near-empty office, hotel, and apartment buildings) caution that buying a troubled property requires taking a very high risk. The financial returns are uncertain and may be a long time in coming. This type of investment is not for everyone; it’s for those who can afford high risk situations.

The profits can come from any one or a combination of circumstances.

    • A market turnaround caused by a boom in the local and/or national economy.
    • An improved system for promoting and operating the property. Some syndicates are being formed solely to manage the troubled property with an option to buy when and if it hits a specified profit level.  
    • Purchase of the property at a bargain price, often combined with imaginative and untraditional financing techniques.

Some lenders are asked to share the financial risks by accepting a low initial interest rate in return for a big share of the profits later on. Sometimes the seller of the troubled property is asked to retain a financial stake in the property and to help turn it around. The seller’s experience and involvement in the project from the start can be valuable.

    • Including the troubled property in a larger development plan. An office building that sits empty might become part of a new industrial park with hotels, conference facilities, and residential apartments, all of which are successful.

Take another look at troubled properties in your area. With fresh new ideas and a re-structuring of the mortgages, the troubles may go away, leaving a profitable investment for you.

Get Started Now
]]>Mon, 16 Feb 2026 13:41:31 -0500<![CDATA[The Need For Both Asset And Property Managers]]>https://www.charlottenccommercial.com/blogs/post/the-need-for-both-asset-and-property-managers

The Need For Both Asset And Property Managers

When owners of large portfolios of investment properties need to make strategic business decisions involving management of these properties, they will usually call on asset managers. Areas of concern are overall leasing strategy involving rental rates and tenant concessions, in addition to repositioning or redevelopment, tenant mix, managing bulk service contracts.

The Asset Manager
There will be owner oversight to the manager’s actions, but the asset manager usually controls such matters as contracts, leases, and capital improvements for portfolio properties and is directly involved in implementing strategies involving financing and tax or litigation-related issues. The asset manager will also be responsible for maintaining communication with lenders and equity partners with respect to financial reporting, debt negotiations, and significant operational issues.

The asset manager also can be expected to provide basic administrative services, including information systems support, in-house legal counsel, financial accounting, coordination of required appraisal, and preparation of annual operating budgets. The asset manager also may plan and coordinate exit strategies–sale and disposition of real estate. Finally, the asset manager will be responsible for overseeing property management personnel.

The Property Manager
Property management responsibilities differ from those of the asset manager. The property manager has a more tactical focus, dealing with the day-to-day operation of individual properties. These responsibilities include: overseeing repairs and maintenance, security, and cleaning operations.

Finance-related responsibilities of the property manager include tenant billings and collections at individual properties; lease negotiations; vendor contracts; cost control for property operations; and maintaining appropriate insurance coverage. They also handle tenant relations and deal with on-site issues such as space and leasing requirements. Finally, the property manager maintains accounting records and performs necessary inspections.

Property managers also may be called on to handle legal matters relating to building and tenant interests and to ensure compliance with local laws and ordinances. Finally, the property manager is the conduit by which information about each property and its operations passes to the asset manager.
Get Started Now
]]>Thu, 01 Jan 2026 11:38:00 -0500<![CDATA[How Good Management Increases Market Value]]>https://www.charlottenccommercial.com/blogs/post/how-good-management-increases-market-value

How Good Management Increases Market Value

Investors purchase residential and commercial income producing real estate to make money. There are two obvious ways of making money from a property. First, the owner takes a share of the annual operating profit generated by the investment, and Second, profits from increasing the market value of the investment beyond what it would be because of inflation alone.  Increasing the market value of rental units does require know-how, absolute understanding of the market values of this type of property and excellent management.

Management and Income
Good management has always been the most important point in increasing or maintaining annual operating profits. Being a skillful manager requires intelligent handling of the functions of buying and selling properties, rent collections, maintenance, leasing, controlling expenses, refurbishing, management accounting and more. All of this requires long “hands-on” experience in the field with plenty of assistance from the latest in administrative hardware and software.

Increasing Market Value
Since the value of a rental property is based directly on the cash return, adding value means increasing cash flow. 
When small investors set out to increase real estate values, the steps are in upgrading and enhancing the cash flow, therefore increasing equity when the property is sold.
When thinking of buying larger commercial properties, there are two major actions:
  • Be aware of the things that have the potential of adding value, taking advantage of this knowledge and moving quickly before another buyer can purchase or option the property. 
  • Do the required homework on the property. A feasibility analysis can measure the ability to add value. There may be many other measures that must be taken, such as market analyses, applications for new zoning, design and construction planning and a plan for marketing.
Professional property managers should be contacted before an investment property is purchased as they will do a much better job than most owners and will more than cover their fees.
Get Started Now
]]>Thu, 01 Jan 2026 11:31:00 -0500<![CDATA[How To Increase The Value Of Investment Real Estate]]>https://www.charlottenccommercial.com/blogs/post/how-to-increase-the-value-of-investment-real-estate
In this issue
  • Increasing Market Value Of The Investment
​Since the value of a rental property is based directly on the cash return, adding value means increasing cash flow. When small investors set out to increase real estate values, the steps are in upgrading houses, duplexes, triplexes, etc., enhancing the cash flow and therefore increasing equity when the property is sold. When working with larger commercial and apartment properties be aware of the things that have the potential of adding value. Do the required homework on the property. A feasibility study can measure the capacity to add value. There may be many other measures that must be taken, such as market analyses, applications for new zoning, design and construction planning and a plan for marketing......(more)
  • Building On Leased Land
Building on leased land results in a separate ownership of that building and the land. The two owners, one of the land, and one the improvement, come together in one investment parcel. In this situation, the landowner wants someone to develop the land, but still wants to continue in ownership. The developer prefers to lease rather than buy the property. One owner wants the security of owning the land with a good lease to the owner of the improvement. The owner of the building puts up less money since the ownership of land is not part of the expenses in the development.....(more)
  • The Fair Cancellation Clause In A Commercial Lease
Whether a rental market is weak or strong, lease negotiations can be difficult when the landlord wants concessions that are different from the norm. One situation that happens is when the owner of an office building or other commercial property intends to sell when market conditions improve, whether that occurs next year or five years from now. Another is the holder of vacant or underimproved property who plans to develop it whenever market conditions justify. In the meantime, these properties must be leased to generate sufficient cash flow to pay operating costs and debt service. Such an owner will be amenable to giving significant concessions, including a low rental, provided the landlord can cancel the lease during the term....(more)
  • How Property Management Makes Asset More Valuable
Management of a building is not just handling problems as they arise and renting units, it is making the asset more valuable to the owner by concentrating on every aspect of the property. Some owners of very large income properties still do not take professional property management seriously and fall behind in values. The professional property manager is keenly aware of all of the recurring costs of a property and how they can affect the bottom line. The owner may applaud and give attention to a one-time saving on a “high-cost” item such as insurance on the property while overlooking the multipliers in the number of units......(more) Click Here For This Months Newsletter
]]>Sat, 01 Feb 2025 16:02:36 -0500<![CDATA[Industrial And Office Park Development]]>https://www.charlottenccommercial.com/blogs/post/1530
In this issue
  • Industrial And Office Park Development
With cheaper land costs and a greater amount of labor sources there has been a move on the part of industry to relocate from the cities to the suburbs during the past few decades. The result of this has been the establishment of industrial and office parks in those suburbs. Many of these have been planned and developed by private investors; others have been planned or sponsored by public agencies. Preparation for construction of an office or industrial park is expensive. It includes plotting, grading, and installing streets, utilities, rail connections and other facilities. With the increased difficulty in securing clearances and permits, speculative development in building these facilities was down......(more)
  • Major Reasons For The Asset Manager
The institutional investor has found that income property must be placed under the supervision of professional, experienced and innovative managers. With more property moving into the ownership of institutions and real estate investment trusts, the need for asset managers increases. Asset managers have become more important during the past decade for three major reasons:....(more)
  • A Good Management System
A good management system efficiently records, reports, and manages income from tenants. A poor system, on the other hand, is likely to increase the amount of work, create tenant conflicts, and reduce the amount of total collections. The income from managed apartments and commercial units is determined by the actual collection of rents, not by the number of occupied units. A fundamental aspect of effective property management is the rent management system, which enables rents and other income to be billed, recorded, collected and deposited.....(more)
  • Office Building For Attorneys Only
Property managers must show some imagination to keep a property fully rented. One way to keep an office building occupied is to consider specializing–renting to members of one professional field. Members of the medical profession have long realized the advantages of having an office in a medical building (that is, in a building occupied only by professionals in the health care field). The building is designed, equipped, operated and maintained solely for their particular professional needs.....(more) Click Here For This Months Newsletter
]]>Sun, 01 Dec 2024 23:04:20 -0500