Once you lease a space, your next goal as a landlord is to retain your commercial tenants. Vacancies can be expensive, as you’ll have to cover the costs related to marketing and tenant screening. You may also need to clean carpets, repaint the walls and make other improvements before taking on another tenant.
To avoid costly vacancies, you’ll want to develop a tenant retention strategy. Here are six tips to get you started.
Stay up-to-date on current trends to ensure your property is competitive within the market. You should know how the rent rates and amenities of neighboring units compare to yours. Your tenants may decide to look elsewhere if your space is outdated or overpriced. Consider sharing marketing information with your tenants to clarify your rental rates.
You should handle all repairs promptly to ensure your property is safe and in good working condition. Property improvements may encourage tenants to renew their leases. These improvements could include the following:
You or your property manager should periodically ask your tenants for feedback on the space and how it is run. Your tenants will appreciate the opportunity to make their voices heard. You may also want to conduct exit interviews with your tenants to find out why they decided to leave and what could have gotten them to stay.
Some landlords are so afraid of vacancies that they keep bad tenants in place. These individuals may cause property damage and miss rent checks, which can be costly to you. They may also push away your good tenants with their loud, messy or otherwise negative behavior. You would be better off sending the non-renewal notice and finding a tenant who won’t cause other tenants to leave.
If you’d like tenants to stick around, let them know—the sooner the better! In addition to the required written notice, consider scheduling a meeting or giving tenants a call to discuss their renewal. This added personal touch may help them decide to stay. Offering incentives for renewals may also encourage long-term tenancy.
Being a landlord is hard work, and you deserve the support of an experienced broker and property manager to help with the process. These experts can assist with marketing your property and bringing you a pool of qualified candidates. Their market knowledge and resources can help in the tenant screening and negotiations process.
One your space is fully leased, your broker and property manager remain great assets in building tenant relationships, managing your property, identifying ways to increase property value and creating leverage during lease renewals.
Contact our landlord representation team if you’re interested in putting your property on the market or our property management team if you’re looking for help to build relationships with and retain your commercial tenants.