Stop and look at your property metrics right now. Are your tenant turnover rates getting a little high?
Turnover is a costly problem for commercial landlords. As soon as a tenant leaves, you have to pay to find a replacement as quickly as possible. You also have cleaning, repairs, marketing, applications, and more responsibilities on your plate.
However, one issue that comes up time and time again is tenant relations. This point is crucial for maintaining (and growing) tenant retention rates.
The above challenges necessitate the need for a property manager.
Learn how a property management company can build strong relationships with commercial tenants.
Clear Channels Of Communication
Tenant relations issues often come down to poor communication. This happens when you're overburdened by paperwork, maintenance, and portfolio management.
A property manager handles this work for you and establishes strong lines of communication. The goal is to let you grow your rental portfolio and enjoy consistent streams of income.
The first thing a property manager will do is introduce tenants to the tenant portal. After signing up for an account, they can communicate through the portal. There is also a property maintenance portal where they can make requests.
Commercial tenants can also call a property manager about emergency repairs.
A Commitment to Property Maintenance
This next point is a big one.
An untidy, worn-down property in need of repairs does not attract customers. Worse yet, you may find customers complaining about such issues online. Property maintenance is a form of reputation management.
The maintenance request portal is just one benefit of working with a property management company. A dedicated manager will visit the property consistently to inspect for repairs. You can also count on upgraded AC systems, electrical wiring, and landscaping.
As a commercial tenant, you may ask your property manager to upgrade retail or office spaces with the following:
- New appliances
- Lighting
- HVAC systems
- Exterior and interior paint
- Window treatments
- New wiring
- Signage
The above necessities improve the customer or employee experience. A reputable property management company would be happy to help.
Lease Renewal Incentives Improve Tenant Relations
Turnover also shows in the lack of lease renewals. Moving forward, include this metric in your game plan.
Decreasing lease renewals can mean several things. The tenant may feel that a new location will attract their target market. This point speaks to the value of growing your commercial real estate portfolio.
Another one is incentive.
If a tenant can find success in another location with a more favorable lease, this is your cue to implement an incentive.
You could offer loyal tenants discount rental rates on the first three months of their new lease. Consider throwing in property upgrades like free signage, air conditioners, and wall treatments.
Experienced property managers are trained in adding incentives to new lease contracts.
Keep the Best Tenants
Don't let good tenants slip through the cracks due to poor communication. Understand the importance of excellent property maintenance. Think about the value of lease renewal incentives.
The above points are vital for improving tenant relations.
PMI Ancient City wants to help. Learn more about our commercial management services or book a free consultation to get started.
