As the economy continues to recover, commercial property management is seeing an increase in rented spaces and facilities. That comes through some creative lease agreements as commercial property owners, managers and landlords attract businesses and work hard to retain current tenants. An empty space makes money for no one, so working with tenants – both current and prospective – is a key factor to attaining and maintaining full occupancy.
Working Together – Tenants, Property Owners & Managers
Tenants are how property owners and property managers make their money. So it makes sense to work with them to the benefit of both parties.
Commercial landlords should make full use of their online property management software. Applicants should submit their applications online so that you can run the background check through the tenant screening software. This is a key part of qualifying good tenants. Run the credit, background, criminal and financial checks and stick to your standards as far as tenant qualifications.
Once a tenant is approved, spend time with them to help teach them about commercial rental property space. Especially a tenant that is new to the business world. They sometimes have a hard time understanding the difference between commercial and residential leases. When they start modifying the space or have to pay to electrical run, they may assume it is part of the agreement, resulting in unnecessary conflict. They may also need guidance on meeting code. It also keeps you informed of what they are doing in the space so there are no surprises later. Take the time to work with them and it will help ensure they stay in the space.
Know What You Are Spending
Many commercial lease agreements include splitting costs of the common maintenance areas among tenants. These get analyzed by the inexperienced and experienced alike, looking for ways to cut expenses. Using a good commercial rental property management system helps you keep track of those costs, run reports and know where you stand with each tenant each month. You can evaluate costs and compare it to your income each month.
It also helps you track maintenance issues and stay on top of them. Letting building or property problems slide only make them harder to deal with later. The property management system will also let you analyze the last three to five years of data, helping you project anticipated costs and provide estimates to property owners and tenants alike for planning purposes. Keeping everyone equally informed is a good way to maintain the type of working relationship that results in tenant retention.
The trick to full occupancy on commercial properties is to know what is being spent while working with tenants to make money and all of them to make money. When all parties feel invested in the success of the property, innovation, creativity and resiliency make it a win-win for everyone.