The vacancy rate for office buildings reached a record high of 18.2% nationwide, topping 20% in markets like Atlanta. If your commercial property vacancy rate has increased, focus on commercial tenant retention. Increasing lease renewals will save you time, money, and stress.
Not sure how to retain your valuable commercial tenants? Apply these lease renewal strategies. Boost your occupancy rate and earning potential today!
Foster Positive Tenant Relations
Prioritize commercial tenant retention the moment new renters move in. Start by providing tenants with multiple ways to reach you. You can use an online tenant portal to consolidate messages.
Try to respond to tenant inquiries as soon as possible. The longer they wait for help, the more frustrated they'll become. Your tenants may realize they can't rely on you.
Instead, try to create positive renting experiences. Remain available and responsive. When replying, be professional, empathetic, and patient.
Solicit feedback from tenants regularly. Leverage their feedback to make informed improvements to how you operate.
Tenants will recognize that you care about their needs and concerns. They may consider renewing commercial leases, knowing they can depend on you.
Ask your happy tenants to share their positive rental experiences online. Over 90% of people read reviews of local businesses to determine quality. These positive reviews could help you attract more tenants in the future.
Offer Incentives
Use the feedback you gather from your tenants to offer incentives they want. These can include:
- Waived payment processing feed
- A free month of rent
- Rent reductions
- Gift cards to local restaurants
Try to tailor your incentives to each tenant. This will show them that you recognize their distinct needs.
Offer to improve the property. A few small upgrades will make the property more attractive than nearby commercial spaces. Your tenants will want to stay, knowing the property meets their needs.
Streamline the Renewal Process
Make it easy for tenants to renew their leases. If the process is complicated and time-consuming, they won't bother.
Use automation technology to simplify the process. Tenants can renew their leases from an online tenant portal. They can access their lease agreements from the portal, saving you valuable time.
Apply Lease Negotiation Tips
If you plan to increase the tenant's rental rate, communicate this 90 days in advance of their lease ending. This will give tenants time to negotiate or explore other options. If they decide not to renew, you'll have time to find new tenants.
Remain patient and willing to negotiate. Try to find a compromise that works for you and your tenants.
Outsource Commercial Tenant Retention
Instead of applying these tips alone, consider outsourcing. A property management company can simplify renewing commercial leases.
Leverage their property management tactics to offer better tenant experiences. With their help, you can generate long-term tenant leases.
Leverage These Lease Renewal Strategies
These lease renewal strategies can boost your occupancy rate. You'll generate more rental income without worrying about vacancies. Develop your commercial tenant retention plan today.
Remember, you don't have to do it alone. Our team at PMI Perimeter is part of the number one property management company in the US. Trust our proven strategies and 20 years of industry experience.
We have a strong track record of success and the awards to prove it. Contact us today to start generating more renewals.
