Getting tenants is just the beginning. The real struggle in the world of commercial real estate is retaining tenants after their initial lease agreement has expired. In commercial real estate, tenants make substantial investments in the spaces they rent. Therefore, it doesn’t make sense for them to move unless there are significant issues. Conversely, for an owner, losing a tenant could affect their income for years, as finding a replacement is not as easy as it might sound.
So, what should a diligent owner do? Luckily, you’ve come to the right place because in this blog post, we will share three simple practices for tenant retention in commercial real estate – practices that we believe yield the best results.
1. Have an Open Line of Communication and Be Responsive
Typically, commercial tenants do not require much attention, but when they do call for a maintenance request or other concerns, they expect to get a hold of someone or receive a response in a timely manner. If you are unable to give your tenants the amount of attention that is required, consider hiring a professional property management company to assist you with this responsibility.
Owners who hire professional and experienced property management companies that are attentive to tenants’ needs and concerns will find that their tenants will be more satisfied and more likely to renew their lease.
2. Streamline Processes and Provide Incentives
When possible, it is important to streamline processes for tenants. Streamlining tenant processes can aid in creating more satisfaction, which can lead to tenants wanting to renew their lease.
Simple ways to streamline processes include offering tenants the option to make payments through an online payment system and providing an online portal to submit maintenance requests. Offering tenants incentives for renewing their leases is another great way to increase tenant retention rates.
3. Have Systems in Place
Managing a commercial property is like running a business. In order for the property to be lucrative and successful, systems must be in place. Effective property management for commercial property owners includes maintaining a smooth and functional, well-kept property, and keeping new and existing tenants satisfied. Through efficient management systems, an owner can address maintenance issues, repairs, tenants, and other responsibilities that come along with commercial property management with ease and control.
Photo by Brandon Griggs on Unsplash
