Commercial Real Estate Property - What is a Tenant Retention Plan and Why Do It?
In this housing market, where things are so difficult for many investors, a tenant retention program is essential to support the cash flow and income from rental property. There is really only one rule to apply to the design and execution of the program, keep good tenants happy and occupation.
In saying this, some tenants of commercial property can be difficult and created problems for the duration of their lease, tenants are not the first places in a program to retain tenants. If anything in the retention plan, you should seek to find replacement tenants to take space from tenants difficult.
Tenants good stuff
So let's look at the tenants who want to continue in occupation. They are the ones that should be promoted more long term leases and property relations and the tenant mix. Here are some parts of tenant retention program that may work for you as a manager or administrator of leasing:
1. The plan must be forward thinking and planning. As part of this, the lease expiration date, option dates, and dates of rent review in the next 24 months should be followed and implemented at the beginning of your case. There is nothing wrong with negotiating a lease or rental 12 months with a good tenant, if there is guarantee of employment for the next two years or more.
2. Stay in touch with all monthly tenants know when they are under pressure from the expansion or contraction of the facilities. It's better for you to find that out and work on it directly, to let the tenant another building to go and give a vacancy or defect in the lease that you can not wait.
3. When tenants are under financial pressure from the local or global economy, it is better to work with them than they lose. It may be that the product or service offered is still a viable offer for the end user market. They just need to adjust the marketing approach with or change the position of its costs. A lease under the same ownership may be an option. It can also help with assignment or subletting strategies.
4. If a vacancy exists on the property, it is better to find an occupant for a short period of 12 months to let the impact of empty space in the image and tenant mix of the property.
5. If you have tenants that are of little benefit to the property and have been significant problems for management during the term of your contract, then the planning process should look at nearby businesses that may be directed to your property and replace the tenant difficult.
6. Establish clear benchmarks in rents, incentives and conditions of the leases so you can negotiate each lease situation within the parameters of reference with the clarity and direction.
A good tenant retention plan will be a stabilizing factor in the property and lease management. All good size properties are incorporated into the plan like this in their annual lease models.
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