In this slower real estate market and economy, your tenants are like gold when it comes to income from commercial or retail properties. Landlords should work with their current tenants to help them be more successful in the property they occupy. Successful tenants pay rent; It’s that easy.
Some of the more traditional and less flexible landlords continue to pressure tenants to rent more, even now, with all the frustrations of the economy.
Unrealistic landlords create a host of problems for the property like these:
- High tenant turnover
- Extended Vacancy Periods
- Tenant turnover creates more costs for the landlord, such as legal fees, leasing commissions, and incentives for new tenants.
Let’s face it, tenants talk to each other; and if the landlord is too harsh on one tenant in a rental negotiation, the other tenants in the tenant mix will find out. Harsh and unrealistic landlords are often the reason for poor property performance.
Finding tenants in this market comes down to a few simple but ongoing strategies. The property or leasing manager may adopt these processes to find tenants for any vacant space:
- Keep in touch with all the business leaders in the local area to find out what changes are coming for them in 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 mix of tenants and see if any tenants want to move
- Call every business in your local phone book to see if they have a business need that involves expansion or change of ownership.
- Send property brochures monthly or every 3 months to local business PO Boxes.
- 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 their location or find another property to occupy.
When property sales slow down (like 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 the deals together.
Landlords need help right now and want to meet agents who understand the market, the solutions available, and the tenants who are relocating. That is the high value that you bring to owners today.