Commercial tenants aren’t as demanding as residential tenants. You probably won’t have to worry about a tenant calling in the middle of the night to complain about a bothersome neighbor. You’ll also be less likely to worry about rent (commercial tenants tend to be more careful when it comes to compliance). However, what they do have in common is that if they’re not satisfied with your services, they will leave. For instance, if you fail to stay on top of property maintenance, they’ll likely look elsewhere.
With that said, there are several things you need to do to make sure your commercial tenants continue to rent with you for years to come. Below, we’ll be breaking down the steps you can take to encourage your tenants to renew their rental contracts with you.
Maintain an Open Line of Communication
When it comes to commercial property management, communication is of prime importance. This is because you won’t be at your property at all times – in case there’s an issue with the commercial property, the first person to notify you will probably be one of your tenants. Open lines of communication allow your tenants to contact you (or your property management company, if you’ve decided to work with one) in case of important concerns. Remember, they’re your eyes and ears.
Besides, commercial renters won’t call you too many times, but they still anticipate you to respond to their concerns promptly. In case they have a maintenance concern, they should be able to inform you about it conveniently, and in turn, you should be able to respond fast. This is particularly true when their workers’ safety is in peril (suppose there’s been a break-in and they want their windows to be repaired pronto).
If you fail to communicate with your tenants, chances are that they won’t renew their rental contracts.
Prepare a Maintenance Plan
Commercial properties tend to be more challenging due to their dimensions. They’re massive real estate investments, and even if you won’t have to worry about your tenant’s space, you will have to maintain the common areas such as the bathrooms, stairs, elevators, and so on. That’s why it’s crucial to come up with a preventive maintenance plan.
A maintenance plan will allow you to stay on top of repairs, conduct inspections, and more. In that way, you’ll be able to nip problems in the bud, so that you’ll encounter fewer problems later on. In turn, your commercial tenants will feel safe, knowing that the property owner is making sure that the building is up-to-code and well-kempt.
Pro Tip: Creating a property maintenance plan for a commercial property can be complicated, as there are more aspects to consider. You may want to partner with a property management firm with a focus on commercial real estate.
Respect Your Tenants’ Privacy
No commercial tenant wants your staff to come into their space at any time. After all, they did rent it to do business, and not to spend their days chit-chatting with you. Not only that, but your tenants’ customers will be uncomfortable, knowing that management is walking around.
With that said, you and your staff should always inform tenants if you plan to enter the space, whether it’s to conduct an inspection, follow up on rent, etc. As a rule of thumb, business hours should be reserved for business – if you have matters to discuss with your tenant, set a time and date that doesn’t disrupt their day-to-day operations.
Interview Your Tenants
If you ever wonder what you could do to improve your commercial property, why don’t you interview your tenants? Rather than guessing what they want, you can get immediate insights from them. Ask them what they think you could do to improve the property as well as your services. Ask them what they like and don’t like. You may not be pleased with some of their answers, but it’s the best way to pinpoint what you should work on.
When tenants feel that you truly care about their feedback, they’ll be more likely to renew their rental contracts. It shows that you truly want to improve your property and provide them with the services that they need. In other words, it shows them that you aren’t in it merely for the money.
Improve the Property
Property improvements not only increase the property’s value but also boost tenant retention. When tenants see that the property owner invests in improvements, they’ll be more likely to rent for another year or two. However, do make sure that the improvements matter to them – for instance, you could add an employees-only cafeteria for your tenants’ staff. Or, you could improve the interior to encourage your tenants’ customers to actually visit the place.
In a shopping center, it would make the most sense to add more parking spaces, as your tenants’ customers will always need a place to park. The lack of parking can deter customers from going to your commercial property. If your tenants’ don’t have customers, they won’t be able to pay their rent, and in time, they will want to leave.
Secure the Property
No one wants to rent a space at a place that’s at risk of break-ins. By securing the property, you will be able to provide your tenants with peace of mind, particularly for those that are open 24/7. Here’s what you can do:
- Invest in security cameras and install them at all entrances
- Illuminate all dimly lit areas
- Trim overgrown shrubs where would-be burglars may hide
- Ask a security guard to patrol the parking lot
Expertly Manage Your Commercial Property With Luxury Property Care
Managing a commercial property shouldn’t be a one-person job. A massive real estate investment requires the expertise of a property management company such as Luxury Property Care. It’s the only way to ensure that your commercial property is well-maintained and that your tenants continue to rent with you. As experts in commercial property management, we can guarantee that your property will get the care it needs in order to encourage tenant retention. We’ll delegate the many tasks that come with commercial property management to our team so that you don’t have to do a thing.