Retaining existing tenants is absolutely an essential for creating and maintaining a healthy stream of revenue for a commercial property owner. This is not easy to achieve especially if you are managing a high volume of tenants. There are many factors that can affect the retention if commercial retail tenants.
When commercial tenants are carefully selected and evaluated, they are more likely to remain for a long time. This is because many commercial retail tenants are looking for a more permanent solution for their business, unlike residential tenants. There are a number of things you can do to ensure you have a higher commercial tenant rate.
Always ensure there is an open line of communication and be responsive.
Commercial tenants usually don’t require a lot of attention, but when they do call for a maintenance request or other concerns, they usually expect a response in a timely manner. A faster response will be a good sign and will make the retail tenants feel more comfortable in your property. If there is a slow response, the tenant might consider looking for other options. Being attentive to the needs of the tenants will make them more satisfied and make the more likely to renew their lease.
Streamline the process and provide incentive.
Try your best and streamline the processes for tenants where possible. Streamlining tenant process can go a long way in helping you create more tenant satisfaction and increase the likelihood of the commercial retail tenants. Some of the ways you can streamline the processes include offering the tenants the option to make rent payments through an online payment system or having an online portal that will make it easier for them to make maintenance requests.
Another way you can retain tenants is by offering them incentives when they renew their leases. Some of the incentives you can offer include limited time offers, free services, discounts, etc.
Have a system in place.
Managing a commercial property is like running a business. In order to have a successful retail property, there must be systems in place. Effective property management calls for smooth and functional, well-kept property and keeping the new and existing tenants satisfied. A property owner can easily deal with maintenance issues, repairs, and tenants if there is a good system in place.
Monitor all the existing leases that are coming up for rent review or expiry within two years. When the dates start drawing closer, you can start negotiations based on the property decisions that have already been made and the tenant retention plan.
Check in with your good tenants.
This will help you ensure that they are happy in occupancy and that they have no pressure for contraction or expansion. If they are, then you need to be working on a way to deal with it before another property owner can offer them another retail tenancy space.
Retaining your commercial retail clients will be easier with the above tips. It all comes down to the way you treat your tenants.