“Retaining (And Attracting) Tenants For Your Office For Rent” written by Mike Marko
Having a hard time retaining good tenants?
For many property managers, retaining good tenants, avoiding vacancies and tenant turnovers are on the top of their list of priorities. Yet it can prove to be the biggest challenge.
Fortunately, you could further enhance your convincing abilities with the help of a tenant retention plan. This contains strategies that, when planned carefully and structured well, will make tenants want to stay longer and renew their contracts.
In this article, we’ll share these strategies that will be needed to achieve tenant retention and attract them in your office for rent.
Strategies for Higher Tenant Retention in Your Office for Rent
Managing a rental business is a challenging job. But what makes it truly difficult is having to manage all the issues that arise from renting out the property to tenants. The biggest issue? Retaining them for a longer term than previously indicated.
Property managers need to be creative, tactical, and able to plan strategically. Having the right strategies for finding and retaining commercial renters is a necessity, and that’s why property managers need to learn what a tenant retention plan is.
The right combination of plans and/or strategies will ensure the success of your office for rent business. That said, it is important for you to learn what a tenant retention plan is and why it is needed.
What is a Tenant Retention Plan?
A tenant retention plan is a strategy to keep the best tenants and/or commercial clients from leaving or terminating their tenancy. The plan contains several programs and services to prevent the ideal tenants from moving out of the building. In addition, it would help the rental business to sustain its cash flow.
Property managers should consider having a good retention plan since it will also indirectly help them attract new tenants. Ensuring the satisfaction of existing tenants will instill loyalty towards you and turn them into your biggest advocates. This means that they will not hesitate to spread out the good word about your property and its management.
So how exactly does one go about creating an effective retention plan to ensure this?
Consider using the Internet in formulating your strategy. Make use of social media in your online marketing or advertising endeavors. Use all of your available resources to attract and retain most qualified tenants.
Having reliable staff members, frequent building maintenance, and other useful amenities can also help you prevent vacancies. Make sure to check the condition of the other commercial businesses in your area, and take note of what needs to be improved in yours.
Supply and Upkeep
A tenant retention plan should include supply and upkeep programs to ensure its effectiveness. This means that your equipment and rental offices will be guaranteed to be in good condition, and not prone to malfunctions.
Tenants could either get annoyed or upset whenever they encounter office issues that could potentially have an impact on their own business activities. This is why it is important that your retention plan provides services that will satisfy tenants enough to convince them to stay longer on the property.
Reasons Why Tenant Retention Is Important
A rental business’s key to success is its tenants. Without them, an office for rent would eventually go bankrupt with insufficient cash flow to keep the business running.
To Maintain a High Client Satisfaction Rate
The best tenants pay their rent on time and take good care of your property. An increase in profit of your rental business would be evident, should you find a way to retain them. However, these kinds of people are hard to find.
A good retention plan has a great chance of keeping your tenants happy and contented. Think of the Domino Effect, wherein if one person is happy with the upkeep and management of the building, others may be positively affected, too. With thorough planning, you get to avoid vacancies and keep the best people in your property, followed by success in your office for rent businesses.
To Avoid Unnecessary Expenses
If your retention plan convinces the responsible tenants to stay in your office for rent, it lowers the cost associated with tenant turnover. The following are some common expenses associated with tenant turnover that you can avoid by retaining tenants:
- Unit cleaning and painting.
- Loss of cash inflow via empty and unrented units.
- Expensive cost of marketing and screening for new tenants.
Useful Tips to Improve Tenant Retention
In a rental property business, retaining the good tenants should be a primary objective. To be able to formulate an effective strategy, here are some useful tips to improve your tenant retention plan:
Get to Know Your Potential Tenants
If you wish to maintain or improve client satisfaction, then you need to get to know your tenants better. Be sure to regularly check in with them to help you get a better understanding of their wants and needs. Doing this helps you initiate a strong business relationship with them.
A retention plan should require a property manager to fully understand a tenant’s business and business model. Incorporating their business plan with your future plans will help you provide useful amenities that they might need.
Don’t Get Complacent
Never assume that you know exactly what your tenants need. Everyone is different, and your assumptions may not be a one-size-fits-all solution. Ignoring the issues associated with building maintenance and upkeep will lead to tenant dissatisfaction, thus ruining your property management business.
Don’t get complacent with just providing your tenants’ needs. Ensure that your staff promptly respond and attend to your tenants’ reports until they get comfortable staying in the office for rent. The property manager or any authorized personnel should then perform constant evaluations.
Keep Up with the Standards
Make sure that the property follows the building codes in your area to avoid any legal violations. Most tenants stay longer in buildings that follow the safety precautions of their state. Consider developing systems that handle the reports for maintenance problems to be able to address and resolve them quickly.
Have a Good Attitude
Being approachable and making your tenants feel at ease when talking to you will help convince them to stay longer. Show them that you are fair-minded and understanding. Don’t ever make them feel that you’re bothered when they call you.
Always maintain a pleasant attitude and show concern for every tenant’s needs. Exercise caution when attending to your tenant’s questions and problems, and never be afraid to refer to the lease agreement.
Have Regular Maintenance in Your Offices
Always schedule an upkeep and maintenance check to keep the property in good condition. Keeping up to market standards can increase tenant retention rate and the value of your space. It could also help your property look appealing and promising to new tenants.
Keep track of your tenants’ concerns, especially when it’s about fixing major issues, as it is your primary duty to keep the habitability of the office for rent. This means that you need to make sure that any reported damages will be acted upon as soon as possible.
Let Tenants Carry Out Improvements
Before a new tenant moves into your office for rent, let them know that they are free to make improvements and alterations to their rented office space, provided they follow your terms and limitations. Be open-minded and flexible with the tenant’s space.
Aside from improving tenant retention, alterations can also improve the value of the rental property. Consider your tenants’ requests for improvement and alterations. Ask them when they would want to make the improvements and how long it may take.
Give Respect to Your Tenants and Their Space
Your tenants are entitled to their own privacy and personal space. Allow them to be independent and assure them that they can ask anything regarding the rented space.
The property managers and other staff of the rental building should always be able to communicate professionally and courteously with the tenants. As an optional step, you could orient your staff as to how they should approach your tenants.
Regularly Schedule Preventative Maintenance Checks
Make it a point to schedule preventive maintenance checks regularly and inform your tenants of when these would occur.
The scheduled maintenance will allow you to find minor issues before it could turn into a major problem that could drive the tenants away from their rented space. This is a proactive approach that showcases how much you value your property’s condition.
Maintain Good and Regular Communication
Tenant retention begins and ends with good communication. When you need to act on something that concerns their rented offices, let them know about it right away and ask them if they would want to participate in the process. This will allow them to prepare for the inconvenience it might bring to their business.
Be Open and Ask How the Office Can Be Improved
Consider having an open discussion during your meetings, where both parties can exchange plans and ideas. Make your tenants feel like they have total control over how their office space is maintained and upgraded.
Being open to ideas also improves relationships with tenants. Always inquire if they have something in mind that could improve their work environment. Many of them have great ideas but are held back by stipulations regarding alterations on their lease agreement.
Give Back to Tenants
Always give back to your tenants and make them feel welcomed and wanted. To show appreciation without spending too much, send your tenants cards or gifts with handwritten notes inside. Doing so will make your tenants realize that you’re not the typical cold and uncaring landlord.
Improve Energy Efficiency of the Property
To counter any energy efficiency concerns your tenants may have, you should have a system that regulates electricity to decrease your utility bill expenses.
Having an energy-inefficient property would cost you a lot more to keep the rental business operating. Consider checking local federal programs and tax advantages that can help you achieve better efficiency and reduced operating costs.
Have an Inviting Property
To have a higher tenant retention rate (and to attract new tenants), your office for rent should be a pleasant and comforting workplace for them. It should be well-maintained, upgraded, and should pass the community standards. To help you improve the appearance of your building, consider doing these tips:
For the Interior of the Building:
- Maintain and clean the front lawn and other areas where the most foot traffic occurs.
- Repaint the walls when needed and the upgrade and regularly clean your decorations.
- Upgrade carpets, curtains, security, and other services.
For the Exterior of the Building:
- Hire a gardener to take care of the plant life around your property.
- Clean the exterior of the building, if possible.
- Clean the parking lot and other amenities.
Offer a Re-Signing Bonus When Tenants Extend Lease
Before your tenant’s lease agreement ends, consider offering a bonus if they choose to renew or extend their contract. Consider giving incentives such as discounts for signing a new and long-term lease or reduction of security deposits.
A tenant retention strategy should include an incentive program. It is an effective way of keeping them in your building for an extended period.
Many tenants move out of their rented spaces because they can no longer continue to pay the current cost of their rent, despite the good relationship between themselves and the property manager. When this happens, consider rewarding their loyalty and trust by extending their lease agreement and decreasing rent cost.
Having a tenant who pays lower rent for a long period is more beneficial than accepting new, higher-paying tenants and arranging turnovers every month.
Know Your Tenants’ Reasons for Leaving
When a tenant gives the notice to vacate their rented space, never hesitate to talk to them and ask why they want to leave. If they provide manageable reasons, then you could provide a solution for the specific issue.
Although these situations are unwanted and unfortunate, do not leave a bad impression on them. Instead, be sure to send them off with your warmest farewells and gratefulness for them putting their trust in you.
Final Thoughts on Retaining Tenants in Your Office for Rent
A good tenant retention plan is needed to keep the best tenants or commercial clients from leaving their rented property or terminating their lease agreement. This is usually made to avoid vacancies in the rental property that can result in income loss.
Many rental businesses will do anything just to retain its good tenants.
To retain tenants in your office for rent, consider using the tips given in this article. The key to winning your tenants’ satisfaction is by having good communication, accepting suggestions, and keeping the rental property in good condition.
Whenever a tenant gives the notice to vacate the rented property, never hesitate to ask for their reason for doing so and provide a solution.
Do you have anything else to add to this office for rent tenant retention plan? Leave them in the comments section below!
1. 9 Most Wanted Amenities To Include In Your Small Office Space For Rent
2. Complying With Building Codes In A Commercial Rental
3. Structure And Exterior Repair Responsibilities For A House For Lease
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Article: Retaining (And Attracting) Tenants For Your Office For Rent