Property Management Strategies for Tenant Retention

Property Management Strategies for Tenant Retention

A tenant-retention program should address how to best accommodate the good tenants. Nimmadhi Property Management organization needs to have tactics in place to retain their best tenants. A tenant-retention program should address how to best accommodate the good tenants, as well as a replacement strategy for tenants who may be more likely not to renew.

Here are some tenant-retention considerations we thought you would find valuable.

• Review all the competing properties in your area to understand their vacancy rates and tenant profiles. Look for any strengths and weaknesses in each of those properties. Try to determine if these properties are offering more than yours, and if they are attracting potential tenants away from you.

• Track the local municipal council regarding future property developments. These can directly affect the supply/demand ratio for office space, and your rental pricing. Also, new properties tend to offer large incentives for tenants, which can undermine your rental position.

• Evaluate your property for tenant mix and leasing profiles. Track which leases are due to expire within the next two years, and whether you wish to retain those tenants. In any case, have in place a tenant replacement strategy for each tenant not having a long-term commitment. Planning and preparation is everything.

• Categorize the tenants in your property as desirable or less desirable tenants. Make it a priority to encourage desirable tenants to stay. You will need a standard set of rentals and lease conditions to apply as part of negotiating with existing tenants. It is prudent to set market rentals that apply to existing tenants. The market rentals that you choose should be carefully considered with regard to recoverable outlays and property expenses.

• The less desirable tenants should be monitored closely as they get toward the end of their lease. When their lease expiration is less than 12 months away, it is good practice to have a replacement strategy in place. It should include target market rentals, incentive allowances, landlord works, and permitted use designations.

• If your property contains one or more anchor tenants, pay special attention to their position in the building, and how they are interacting with other building tenants. A valuable anchor tenant encourages customers to come to the property and helps provide stability and credibility for the building. In short, a good anchor tenant helps the property to be successful.

Managing tenant relationships can be complicated. When you add reward programs into the mix, your tenant retention plan gets even more complex. Luckily, Nimmadhi property management retain you a best tenant relationship.