The 5 Biggest Mistakes Property Owners Make (And How to Avoid Them)

Owning commercial real estate can be a highly profitable investment—if managed correctly. However, even the most experienced property owners can make mistakes that silently erode profitability, create unnecessary stress, and turn a solid investment into a financial drain. Avoiding these common pitfalls can mean the difference between thriving and just surviving in commercial property ownership.

1. Ignoring Tenant Retention

Many owners focus heavily on acquiring new tenants but fail to invest in keeping their current ones happy. High tenant turnover leads to lost rent, expensive marketing, broker commissions, and potential downtime.

How to Avoid It: Build strong tenant relationships through proactive communication, fast response times, and fair lease negotiations. A well-managed property with satisfied tenants experiences lower turnover and higher long-term profitability.

2. Underestimating the Cost of Deferred Maintenance

Pushing off maintenance to “save money” almost always backfires. Small issues—like a minor roof leak or a malfunctioning HVAC system—can quickly turn into major expenses if ignored. Deferred maintenance not only leads to costly emergency repairs but also reduces property value and tenant satisfaction.

How to Avoid It: Implement a preventative maintenance plan. Routine inspections and proactive repairs save money in the long run and keep tenants happy, reducing turnover.

3. Overpaying for Services

Many property owners unknowingly overpay for services such as landscaping, cleaning, maintenance, and security. Without proper oversight, vendors may charge inflated prices, or worse, provide subpar service while billing premium rates.

How to Avoid It: Work with property management professionals who have established relationships with vendors and know how to negotiate competitive contracts. Conduct annual vendor reviews to ensure pricing and service levels remain competitive.

4. Poor Lease Management

A weak lease structure can leave property owners vulnerable to financial loss. Common mistakes include failing to account for operating expense pass-throughs, unclear maintenance responsibilities, or not adjusting rent to market rates upon renewal.

How to Avoid It: Carefully review lease agreements and stay updated on market trends. Work with experienced brokers and property managers to structure leases that protect your interests and maximize revenue.

5. Trying to Manage Everything Alone

Many property owners believe they can handle everything themselves—from leasing and maintenance to financial oversight and tenant relations. While hands-on involvement is great, it can lead to burnout and inefficiencies when stretched too thin.

How to Avoid It: Partner with an experienced property management team. A skilled manager will handle day-to-day operations, streamline expenses, and ensure the property is running at peak performance—allowing you to focus on big-picture growth.

Maximize Your Investment with Smart Management

Avoiding these common mistakes is key to running a profitable, stress-free investment property. At Strauss Realty & Management, we help property owners maximize their income, reduce headaches, and operate efficiently. If you’re ready to take your property management to the next level, we’re here to help.

Contact us today at (773) 736 - 3600 to learn how we can protect and grow your investment.