Being a commercial property owner is no walk in the park. While it comes with its fair share of perks, owning commercial property involves ongoing property maintenance, collecting rent, finding and managing tenants and so much more.
While owning commercial property is a lucrative business endeavor, it is not passive. There's work involved, especially when it comes to tenant retention. Ask any landlord and they'll tell you that tenant turnover is one of the most time-consuming and expensive aspects of the rental business.
So, what do successful tenant retention programs look like? Find out here.
Tenant Retention Programs: What Should They Include?
As a landlord, happy tenants equate to lease longevity. The happier they are, the better your odds of successful tenant retention rates. All tenant retention programs should include these high occupancy techniques:
1. Rent/Lease Incentives
Who doesn't enjoy receiving a freebie every now and then? When it comes to tenant retention, rent, and lease renewal incentives should be a go-to for landlords.
A simple example is offering your commercial tenants a chance to improve their credit score by paying their rent on time. This encourages good financial behavior and also offers you peace of mind.
Rewards such as lower rent, free amenities, or free parking are also great strategies to encourage tenants to renew their leases.
2. Keep the Property Updated and Modern
There's no denying how competitive the commercial property market is. If you can stay one step ahead of your local competition by keeping your property modern, clean, and updated, this is one of the best ways to retain tenants.
By making simple updates such as a fresh coat of paint, cleaning the exterior, and updating landscaping or furnishings, your tenants are more likely to feel satisfied in the space and renew their lease.
3. Offer a Tenant Benefit Package
If you want to show your tenants that you really care about what they want and need, offering them a tenant benefit package is a very smart move. These packages usually include a combination of different services and perks, catering to your tenant's different needs.
For example, you could include assistance with moving into the building, free water and stationary delivery, or a benefits program with access to renters insurance.
4. Address Maintenance Issues Right Away
If there's one thing that gets under the skin of tenants, both commercial and residential, it's unattended maintenance requests. This should be at the forefront of all your tasks as a commercial landlord.
Take your tenant's maintenance requests seriously and address them as promptly as possible. It's not always easy due to service delays, but make sure you're always in contact with your tenants and assure them that you are handling these issues asap.
Find the Best Beverly Hills Tenants With PMI
If you're a commercial landlord looking for property management tips for your tenant retention programs, our hands-on, experienced team at PMI, Beverly Hills, is your go-to.
With many years of unrivaled property management expertise, we specialize in finding you the best tenants for your commercial property and aim to keep those tenant retention rates high. Learn more about what our commercial property management services can offer you.
