Despite the troubles the global food industry is facing, restaurant tenants still have to pay rent. An NYC Hospitality Alliance Survey revealed that seventy-one percent of landlords would not waive portions of rent and that ninety percent of them would not formally renegotiate leases.
Although landlords are aware of their restaurant tenants’ predicament, they still need income, considering that they have mortgages and property tax bills to pay. Restaurant consulting firms that support both landlords and tenants can improve the relationship between these two parties.
4 Common Issues that Landlords and Property Managers Face
With or without the pandemic, issues that strain the landlord-tenant relationship are bound to occur. The following are the five common tenant-related issues that landlords and property managers face:
- Unpaid rent and late rent payments: There are several reasons why tenants withhold rent from landlords, ranging from cash flow shortages to maintenance disputes. Regularly dealing with tenants who do not pay on time or who do not pay at all can be exceedingly exasperating, particularly if they are repeat offenders.
- Intentional damage: This is perhaps every landlord’s biggest nightmare. It’s unfortunate that some tenants intentionally cause damage before vacating, leaving the landlord with considerably high costs.
- Messy evictions: Some landlords are lucky enough to go through their whole lives without having to evict. Others are not so lucky. Any landlord who’s gone through the eviction process can attest that the situation is never pleasant. If done inappropriately, evicting a tenant can be costly and incredibly stressful.
- Legal troubles: Landlords cannot merely evict their tenants, regardless of whether their reasons for kicking them out are legitimate or not. Any landlord who wrongfully evicts a tenant can get into legal trouble that can spawn unnecessary legal costs, such as attorney fees, court costs, etc.
How a Restaurant Consulting Firm Can Help Mitigate Tenant-Related Issues
Thousands of new restaurants go into business every month across the country. This can only mean one thing – there’s certainly no shortage of tenants out there that would be interested in filling your restaurant space. While many restaurant tenants can lease your space, not every restaurant is the right fit.
To avoid the common issues we’ve discussed above, you should rent to a reliable tenant with a strong sense of responsibility. Unfortunately, the tenant onboarding process is complex and time-consuming.
For busy landlords with tight schedules, hiring a restaurant consulting firm to handle the tenant onboarding process can be incredibly beneficial. A restaurant consulting firm can help in:
- Vetting tenants before signing a lease.
Vetting all prospective restaurant tenants is critical to safeguard your investment and ensure that all your tenants and the neighbors continue to enjoy a harmonious environment. A restaurant consultant can vet prospective tenants to ensure that they are reliable and responsible. By vetting potential tenants beforehand, a restaurant consultant can help you to avoid problematic tenants into your restaurant space.
- Negotiate a Lease
A restaurant consultant that works for both the landlord and tenant can help facilitate the lease negotiation process. For instance, a restaurant consultant may have brilliant ideas on expediting the construction process if a new restaurant tenant needs to occupy the space ahead of schedule. As the chief negotiator, a restaurant consulting firm can also save landlords the trouble of dealing with tenants breaking their lease agreements.
- Offer Plans
Having a great idea doesn’t automatically guarantee success. One needs to have a solid business plan in place. For prospective tenants considering launching their first restaurant, they can benefit from a restaurant consultant’s guidance. The consultant can offer advice that can help the restaurant tenant at every stage, ensuring a successful business. In return, the landlord and property manager don’t have to worry about a failing business within their portfolio.
- Suggest Advice
For some restaurant tenants, they may need advice and guidance at inception. For instance, they may need advice about hiring and retaining staff, determining menu pricing, creating menus, and collaborating with designers and experts. Other tenants may need advice and guidance when their restaurants are up and running.
- Provide Training
The main goal for a restaurant consulting firm is to offer advice and training in all restaurant service areas to ensure that the tenant’s new venture becomes a success. When landlords or property managers hire a team of restaurant consultants, they can be involved from day one to guarantee profit and mitigate any issues along the way.
Hire a Competent Restaurant Consulting Firm Today!
If you’re a landlord or property manager looking to fill a vacant restaurant space, hiring a reliable and competent restaurant consultant firm is the best decision you’ll make for yourself and your future tenant(s).
Blue Orbit is a restaurant consulting firm dedicated to supporting landlords and property developers by screening potential tenants to ensure they are the right fit and providing restaurant concept development.
Are you ready to talk with one of our expert restaurant consultants? Contact us today and tell us about your situation and how you’d like us to help.
Ray Camillo – Founder & CEO, Blue Orbit Restaurant Consulting