3 Approaches to Resolving Conflicts With Tenants in Industrial Properties
Managing industrial properties comes with unique challenges, especially when conflicts arise with tenants. This article explores effective approaches to resolving issues such as vibration disputes, maintenance response, and unauthorized subletting. Drawing on insights from industry experts, these strategies aim to maintain positive landlord-tenant relationships while addressing common problems in industrial real estate.
- Mediate Vibration Dispute with Expert Input
- Improve Maintenance Response for Tenant Satisfaction
- Address Unauthorized Subletting and Safety Violations
Mediate Vibration Dispute with Expert Input
A few years ago, I faced a significant conflict with a tenant in an industrial property I managed. The tenant, a manufacturing company, was frustrated because their heavy machinery caused vibrations that disrupted a neighboring tenant's precision equipment. The neighbor demanded immediate action, threatening to break their lease, while the manufacturing tenant argued their operations were within their lease rights. The tension escalated quickly, with both sides feeling unheard.
I approached the situation by first meeting each tenant individually to listen to their concerns and review their lease agreements. I acknowledged the manufacturing tenant's compliance but emphasized the need for a solution that worked for everyone. I then arranged a mediated meeting, bringing in a structural engineer to assess the vibrations and propose mitigation options, like installing vibration-dampening pads. I split the costs between the tenants and the property owner, which I negotiated as a fair compromise. Throughout, I kept communication transparent with regular email updates. The solution worked, and both tenants stayed. From this, I learned the importance of staying neutral, using expert input to guide decisions, and acting fast to prevent escalation. It's shaped how I handle conflicts ever since.
Improve Maintenance Response for Tenant Satisfaction
We once had a challenging situation with a tenant in an industrial property who was really unhappy about how long it was taking to get maintenance issues sorted out. They felt these delays were affecting their business operations, especially when it came to keeping their equipment running smoothly and ensuring their staff's safety.
To tackle this, we decided to meet with the tenant face-to-face to get a clear picture of what was going wrong and how it was impacting them. We listened to their concerns and acknowledged the difficulties these delays were causing. After that, we worked closely with our maintenance team to prioritise the repairs they needed and set a clear timeline for when things would be fixed, making sure to keep the tenant updated every step of the way.
We also took a step back to review our maintenance processes to see how we could improve response times and avoid similar issues in the future. This experience taught us how crucial it is to communicate openly and respond quickly to tenant concerns. It reminded us of the importance of building strong, trusting relationships with our clients by being attentive and proactive.
Address Unauthorized Subletting and Safety Violations
One example that stands out involved a tenant in an industrial property who was consistently late on rent and had begun subletting part of the space without approval. The situation escalated when the subtenant caused a minor fire hazard due to improper storage of flammable materials—something that violated both the lease and local code.
Rather than react with immediate legal action, I set up a face-to-face meeting with the primary tenant. I approached it with a firm but collaborative tone, making it clear that the goal was to protect both our interests and maintain safety and compliance. We reviewed the lease together, addressed the violations, and outlined a path forward: the subtenant had to vacate within 14 days, and the tenant agreed to sign a lease amendment forbidding subletting without written consent, with a stricter penalty clause moving forward.
To support compliance, I also offered to help them find additional space if they were outgrowing the current facility, which helped ease tension. The situation was resolved without needing lawyers, and the tenant remained in place without further issues.
What I learned is that even in commercial real estate, where leases are stricter and stakes are higher, human communication and problem-solving go a long way. Addressing the issue early, calmly, and with a clear solution in hand helped preserve the business relationship while still protecting the property and my investment.
