The success of your commercial real estate investment depends on keeping it occupied with stable, long-term tenants. How do you find, place, and retain these tenants?
It comes down to reputation and establishing positive, professional tenant relationships.
We have some ideas about how to position yourself to attract the best renters.
Establishing and Maintaining Good Tenant Relationships
Your tenant relationship begins even before your tenants sign a lease and move into your property. Think about how you respond and whether you’re accessible during the marketing and leasing period. If prospective tenants have to leave several messages before you call them back, they aren’t going to feel like you’ll be responsive as a landlord.
Respond right away to people who have questions about your property. Offer to set up showings, and be present and willing to answer questions. Once they indicate they want to rent your space and you’ve approved their application, make the move-in process as easy and efficient as possible. Provide reasonable timeframes for when the space will be ready. Offer resources and support as they’re getting settled.
You’ll maintain a good relationship by respecting their privacy but checking in from time to time to make sure everything’s okay. A good attitude goes a long way with your commercial tenants. They want to rent from people who are easy to work with.
Take Care of Maintenance With a Sense of Urgency
Maintenance is a big part of tenant satisfaction. When your tenants report a problem with the parking lot or something that needs attention in the building’s lobby or in their particular unit, make sure you’re responsive. Don’t wait to solve problems, and always communicate with your tenants about where things stand and how you’re planning to fix problems.
Always be clear about your expectations. Make sure your tenants understand what they’re responsible for when it comes to making repairs or replacements.
Every maintenance issue, whether minor or major, will feel like a big deal to your tenants. Take care of things quickly and make sure you have a great team of vendors and contractors who will treat your tenants with respect and care.
Curb appeal is important, too. Keep up with things like landscaping and pest control so your tenants can continue feeling good about operating out of your property.
Keep Rental Increases Reasonable
When it’s time to negotiate a lease renewal, you’ll likely want to raise the rent.
This is typically expected by commercial tenants. They know they’re likely to pay more when they renew the lease. But, don’t make outrageous increases that will chase them away. There’s a lot of value to keeping your tenants in place, and sometimes making a minimal increase is well worth it in the long term.
Listen to your tenant’s needs at lease renewal time as well. Maybe they want a longer lease term or a shorter one. Perhaps they’ll ask for some improvements or upgrades to the space. If you’re willing to negotiate, they’re more likely to stay.
These are just a few things you can do to keep your commercial tenants in place for the long term. If you’d like to hear some additional strategies, please don’t hesitate to contact us at Preston-Lee Management Company. We’ve been providing property management services in the High Desert for more than 20 years.
