In this slower housing market and economy, your tenants are like gold when it comes to commercial or retail property income. Landlords must work with their current tenants to help them be more successful in the property they occupy. Successful tenants pay the rent; It’s that easy.
Some of the more traditional and less flexible landlords continue to push tenants to rent more, even now, with all the frustrations of the economy.
Unrealistic landlords create a number of problems for the property such as these:
- High tenant turnover
- Extended vacancy periods
- Tenant turnover creates more costs for the landlord, such as legal fees, leasing fees, and incentives for new tenants.
Let’s face it, tenants talk to each other; And if the landlord is too harsh on a tenant in a rental negotiation, the other tenants in the tenant mix will find out. Harsh and unrealistic landlords are often the reason for a property’s poor performance.
Finding tenants in this market comes down to a few simple but ongoing strategies. The property or lease manager may adopt these processes to find tenants for any vacant space:
- Stay in touch with all the business leaders in the local area to find out what changes are coming for them in the relocation and new space.
- Look at new real estate developments to learn about changes in space supply and demand
- Visit other properties to see their tenant mix and see if any tenants want to move
- Call all businesses in the local phone book to see if they have a business need involving expansion or change of ownership.
- Send property brochures monthly or every 3 months to the PO Boxes of local businesses.
- Keep a database of the people you talk to.
- Create a lease expiration profile of all relevant leases in the local area. Any lease that is 12 months from expiration should be your target for contact.
In any real estate market and at any time, there are tenants who want to change locations or find another property to occupy.
When property sales slow down (as they are now), there are still significant new business and commission opportunities in property leasing. You just need to know the rents, expenses, leasing strategies, and incentives that are putting together deals.
Landlords need help right now and want to meet agents who understand the market, available solutions, and tenants who are moving. That’s the high value you bring to homeowners today.