Owning a commercial property is a solid long-term investment, but keeping it profitable takes more than just signing tenants and collecting rent. According to Sean Grove, Business Growth & Commercial Manager for the Rawson Property Group’s Commercial division, landlords (or their representatives) need to take an active role in everything from tenant strategy to maintenance and compliance.
“Successful commercial property ownership is about consistency, foresight and building strong relationships,” says Grove. “You want your asset to perform well today, but also hold its value – and even grow it – over time.” Here’s his take on what it takes to keep a commercial property investment in peak condition, and why it’s worth doing right.
Prioritise tenant quality
One of the most common missteps Grove sees is landlords rushing to fill a vacancy with the first interested party.
“It’s understandable – vacant space means lost income – but cutting corners on vetting can end up costing you far more,” he warns. “A solid tenant brings stability and predictability. A risky one brings late payments, damage, and lease disputes.”
To minimise that risk, he recommends a thorough and standardised screening process:
- Review two years of audited financials to understand the business’s long-term viability
- Request six months of bank statements to assess liquidity.
- Confirm CIPC registration and SARS tax clearance to ensure compliance.
- Run full credit checks through trusted agencies like TPN or Compuscan.
- Call former landlords to check on payment history and general conduct.
“You're not just letting space – you’re partnering with another business. Choose wisely.”
Offer strategic flexibility
The commercial landscape has changed significantly, and many businesses now need more adaptable spaces and lease terms. “We’re seeing tenants who want room to grow, or scale back, without being locked into rigid leases,” says Grove. “Being able to accommodate those needs without compromising your own returns is a game-changer.” He suggests thinking creatively about how to offer flexibility without sacrificing long-term security.
For example:
- Include renewal and expansion options in your lease agreements.
- Allow subletting with landlord approval, especially for start-ups or co-working models.
- Offer shorter initial lease terms with structured extensions to attract new or growing tenants.
“If a lease is too inflexible, you risk losing tenants just when they’re finding their feet. But if you strike the right balance, you can grow together.”
Stay ahead on maintenance
It might not be glamorous, but maintenance is one of the clearest indicators of a well-managed property – and a big influence on tenant satisfaction. “When tenants feel like their space is neglected, they won’t stick around. And if you leave issues to fester, you’re only inviting more costly repairs later,” Grove explains.
He recommends a proactive approach:
- Set a structured maintenance calendar that includes HVAC, plumbing, electrical, roofing, and lifts.
- Establish strong relationships with service providers to handle both planned and emergency work.
- Keep open lines of communication so tenants can report issues easily and expect quick resolutions.
“Well-maintained properties rent faster, renew more often, and attract better tenants. It’s worth every cent.”
Keep it compliant
South Africa’s commercial property laws and municipal regulations are not something landlords can afford to ignore. “I’ve seen leases fall apart because a building’s zoning didn’t match the tenant’s use, or because safety certificates weren’t up to date,” says Grove. “Compliance isn’t just about red tape; it protects your lease and your asset.”
To stay on the right side of the law, he suggests:
- Double-check zoning approvals for all business activities on-site.
- Keep compliance certificates up to date, including electrical, fire, and structural safety.
- Document everything clearly in the lease – especially indemnities, tenant obligations, and operational requirements.
“Think of compliance as risk management. It gives you confidence that you’re protected – legally and financially.”
Embrace energy efficiency
With rising utility costs and increased demand for sustainable operations, energy efficiency has become a strong drawcard for tenants. “Corporate tenants, especially, are under pressure to meet sustainability goals. If your building helps them do that, you become a far more attractive option,” Grove says.
He suggests investing where it matters most:
- Install energy-saving features like LED lighting and motion sensors.
- Consider solar or alternative energy solutions for long-term savings.
- Upgrade insulation and plumbing fixtures to improve water and temperature efficiency.
“It's not just good for the planet – it’s good for your pocket and your rental prospects.”
Build long-term relationships
According to Grove, one of the most overlooked aspects of property management is simple: communication.
“Tenants are more likely to stay when they feel heard, respected and supported,” he says. “A lease might last three years, but a good relationship can last a decade.”
To foster that relationship:
- Touch base regularly – not just when there’s an issue.
- Be transparent about upgrades, disruptions, or changes in terms.
- Look for ways to add value, like shared services, fibre, or early renewal incentives.
“The best landlords treat tenants like partners. That mindset pays off over and over again.”
Turning insight into action
Commercial property success isn’t about luck. It’s about strategic, hands-on management. From selecting the right tenants to staying compliant, being proactive today protects your returns tomorrow.
“The market will always have its ups and downs,” says Grove, “but landlords who invest in the fundamentals – relationships, maintenance, and smart planning – tend to thrive in the long run.
