Your main goal as a commercial property owner is to maintain and drive a good revenue stream. In order to do so, you must recruit and retain tenants. Commercial property owners do have an advantage over residential landlords as commercial leasing lends itself to favourable long term leases, but being a commercial landlord is not without it’s challenges.
A commercial or retail property that is attractive to tenants will naturally draw interested parties; once the space is leased there are a number of strategies landlord’s can use to retain existing tenants and continue to promote the property as desirable.
Below are 5 tips for retaining tenants for your commercial or retail property.
Develop Processes to Manage Facilities and Tenants
If/when there is an HVAC, plumbing or electrical issue in your building, your tenants should know exactly who to contact and be confident about how and when it will be fixed. They should know how to address any issue to get it resolved in the fastest, most efficient manner possible. Your tenants will be able to do so if you have properly communicated established processes. How they pay their monthly rent or request specific services should be spelled out for your leases as well.
Maintain Responsive Communication
Apart from location and rental fees, ease of communication potential tenants feel during initial dealings could make or break lease agreements. Communication is key to keeping tenants satisfied throughout their tenancy. If problems arise, be open and swift to resolve them. If maintenance is scheduled for the building, let tenants know in advance. Open lines of communication reassure tenants that their interests are top priority.
Pinpoint Lease Renewal Dates
Be proactive and approach your tenants with the option to renew their lease well in advance. Some landlords may even consider offering a lease extension or a re-signing bonus as a gesture of good will. A re-signing bonus is a small fee to pay when you consider the expense of re-marketing the building to find a new tenant.
Proactively Manage Improvements
There are many ongoing ways in which a property can be improved. From property grounds to energy efficiency; if your property is well taken care of, the less likely you are to have tenant turnover. If you are interested in learning what improvements your tenants think would make the building better, ask. With improvements that meet their business needs, they become more tied to their space.
Hire a Professional Property Manager
Retaining a professional property manager to manage your real estate asset can make a huge difference in retaining tenants. If you consistently struggle to retain tenants and fill your vacant units, a property manager will make an immediate difference. Managing entire portfolios of commercial entities, management companies have vast experience with what works and what doesn’t when it comes to developing relationships with tenants. Their intervention will deliver the return on investment you’ve been seeking for for your commercial space.
To learn more about how a professional property manager can turn you commercial property into a revenue generating real estate investment, connect with Greg Chew below.