Does your commercial property feature a revolving door of tenants? Are you looking to more effectively secure tenants for a more stable investment? If retaining consistent revenue for your commercial property has become an issue, then maybe we can help. Here are a few ideas when it comes to creating a more agreeable and sustainable environment for the perfect tenant as we look at how proper building maintenance can help with commercial tenant retention.
First Impressions Not Worst Impressions
The first impression starts with the arrival of the tenant and the initial meeting. This means that outdoor property maintenance is key. Make sure that the exterior of your commercial property is professionally maintained.
Remember, potential tenants want to be as proud of the property as you are. They are seeking a building that properly reflects their brand and sense of professionalism. So, make sure that your landscape is professionally maintained and that any and all commercial signage is clean and readable.
That First Deep Clean is on You
The first impression is usually all that it takes to convince a potential tenant to lock down your property or run for the hills. Therefore, presentation is absolutely critical. A professional tenant will likely flinch if a commercial property interior is neither well maintained nor well cleaned.
So, be sure to go the extra mile right out of the gate with a deep cleaning. You will want your potential tenant to appreciate a beautiful lobby and tidy common areas. When possible, try not to saturate office spaces with too much furniture. Tenants tend to prefer properties that suggest an “open air” about them. Cluttered workspaces are not typically well-received.
If your commercial property has warehouse space this, too, should be well maintained for presentation. Bays should be cleaned and any warehouse shelving or storage units should be organized and ready for inspection. Again, a decluttered space is highly recommended.
Make the Tenant NOT Want to Leave
To start with, it’s clear that all commercial property owners are like you in one key area: They, like you, want to generate a profit through routine revenue. So, yes, it’s wise to make sure that the rate you offer is in line with your business needs. However, make sure that your rate is fair and one that is in line with your building’s location, access to infrastructure and current market trends.
If a renewed lease involves a rise in rent then make sure to telegraph that well ahead of the renewal period. Don’t slide that increase in at the last second. Happy tenants will suffer a rate increase so long as the reasoning for that new expense is transparent and fully understood. In other words, a proper and well-respected tenant-landlord relationship is cemented by a mutual sense of honesty and appreciation.
In fact, a wide-open communication channel is not just recommended, it’s essential. As much as a landlord needs to trust a tenant, a tenant requires the same from a landlord. Make sure that tenants have easy access to you so that they can spell out any issues or difficulties when it comes to building or maintenance issues. If a tenant feels as though you are a reliable and responsive landlord, they are far more likely to dig in and appreciate their commercially leased space for the long term.
Give a Little, Get a Lot
An investment is designed around the idea that the investor must give a little in order to get more in return. Typically speaking, the more one puts into an investment, the larger the payoff. Sadly, this isn’t always the result but the lesson here is to make sure your commercial property stands out as an investment you care for so that it, in turn, can care for you.
Be sure to maintain upkeep on key building elements and machinery. As an example, tenants won’t care much for a faulty HVAC system. Sure, maybe the current cooling system “sorta” keeps the property cool in the summer, but tenants will expect a certain level of comfort and cleanliness. HVAC maintenance is an expense but that cost can be easily absorbed into the lease agreement.
Air handling units that are not properly maintained will result in tenant frustration and eventual turnover. It could also have more dire results when it comes to building upkeep and health issues. As an example, if humidity and other indoor air quality issues are not properly checked, mold and other bacterial problems could become a factor. Tenants might then sue in order to negate the lease. Also, this would likely lead to costly interior repairs.
When it comes to giving, go big and also consider how else to better serve your investment and those who occupy your property. As an example, generators are becoming more popular and are even expected at times. A properly run business loses money the moment it loses power. An hour or two without electricity could become a real issue for those tenants.
Another thought is to aim for a more “green” approach. If your commercial property is not well insulated then bring in a professional to make sure you have the weather stripping you need for all doors and windows. Solar panels are also becoming more effective and more affordable. These are just a few ways in which a commercial property owner can make his or her property much more attractive when it comes to a long-term lease agreement.
Make it Right for Your Tenants and They Will Make It Right for You
It’s in the Ten Commandments. Love thy neighbor. This could easily translate into the simple rule that a landlord should always treat a tenant as a landlord would also want to be treated. Poor communications and an inability to follow through never serve a relationship well.
If you are ready to get more out of your commercial real estate investment then consider a few of these points. A satisfying tenant-landlord relationship starts with a good first impression and a general respect for the condition of your property and the overall comfort of your tenants. After all, an honest, reliable landlord who celebrates community and communication is a very difficult landlord to walk away from. A proficient building maintenance company can help the landlord satisfy their end of the agreement. Contact Fernic today to inquire about our comprehensive building maintenance services.