Retain your tenants - CBC Blog - Part I

I'm pleased to be able to share from the mother ship CBC blog some tips for landlords (and their property managers) for holding on to your tenants. In our property management huddles we spend time on this topic because we all agree it's a good idea keep your tenants happy in their office home.

It's way too expensive to replace them, right?  Right!!  Enjoy...and watch for Part II in my next post.

http://www.cbcworldwide.com/blog/tenant-retention-tips-part-i

Carol

08 Jun 2016

Tenant Retention Tips: Part I

Obtaining new tenants can be a costly affair for landlords. If tenants are dissatisfied, given today’s market, they can easily seek new space. It is always the preferred option to retain good tenants – those who pay their rent on time and cause little or no problems.

The Coldwell Banker Commercial® organization offers these tips to assist in retaining tenants:

1. Meet Your Tenant
Even though the property was bought as an investment, you are still in the people business and going out of your way to meet up with lessees can lead to longer, more meaningful dealings between yourself and your tenant.  Also, understand their business and business model.  They may have unique requirements.
2. Don’t Get Complacent
A long-term tenant is a valuable asset in a saturated rental market, so make sure you keep on top of all those little jobs that will make it easier for the tenant to feel like it is a good working environment.

• Maintain the property in the best possible condition; make sure equipment if up to date
• When the tenant reports maintenance problems, sort them out immediately
• Issues involving water, electricity, heating and air conditioning or safety should be resolved inside of 4 hours with a follow up to the tenants.

3. Have the Right Attitude
Show that you’re fair-minded and understanding.  Don’t act like the tenant is ‘bothering’ you when they call.  Be pleasant and show concern for their needs.  Don’t ignore their questions or distresses.
4. Replace a Minor Item at Least Once Every Year
Have a plan to maintain the property on an annual and rotating basis so you are constantly generating a fresh appearance. Keeping up with some of the competing buildings will make a tenant see you care about the property and they will be less inclined to look around for unnecessary reasons. Amortized over time, the minor expenses don’t cost that much.  Plus, they will be attractive to new tenants, and they increase the value of the space.
5. Tenant Improvements
Requests for improvements should always be considered.  Be open-minded and flexible with the tenant’s space.  The tenant can always restore the space to its prior condition if agreed.
6. Respect Their Space
When landlords meet tenants in their property, be respectful, friendly and informal.  Avoid disparaging comments causing them to be unsettled by voicing possible future plans that are adverse to the current tenancy.
7. Pro-active Problem Search
Perform regularly scheduled “preventative maintenance checks.”  Make sure the tenants are aware of when such things are scheduled.  Performing these checks demonstrates a proactive approach as opposed to a “wait and see” and allows you to find issues before they escalate to a stage where they hand in their notice. Always ask if everything is acceptable or if the tenant has any problems.
By John Boyer, Senior Director of Marketing, Coldwell Banker Commercial Affiliates

Outsourced Vesting - sounds like an oxymoron?

I have a subscription to the trade magazine Building Operating Management that I often just skim because so many of the articles are devoted to "facility management" that I don't find them all that relevant.  It's great to do a deep dive into how to get your building occupants to re-cycle their plastic bottles, for example, but the advice is a lot more relevant when all those occupants work for the same company.  Not so much for those of us who manage properties with multiple tenants and multiple outlooks on the benefits of re-cycling.

But I was intrigued with an article in the last edition, it was called  New Strategy Could Shake Up Outsourcing,  and reports on a supposed trend in facility management that places emphasis on the Vendor/Provider to add value, contribute to the facility's success, etc.  I understand the perspective of the article, that it may be difficult for an attorney who gets paid $350 per hour, or the janitorial company who gets paid x cents per square foot to view their service from the perspective of the building owner. That is exactly, however, what property management, at least excellent property management, is all about.

The article provides a roadmap of sorts for the facility manager to help his or her service providers to view the relationship as a "WIIFWE" or What's In It for WE, a tweak of the phrase WIIFM, or What's in it for ME.

I think the reason it's easier for me as a Property Manager to think in terms of WIIFWE is that in almost every case I can think of, my client will judge my performance by what the value of his property does over the period in which we manage the property.  It is often the reason why mortgage companies will require owners to hire a professional management company.  They know that professional management, especially those companies (like us) who are invested in improving property value, will more than pay for the cost of their fees in what they do every day.  Increased property value is shorthand for all the good things that come along with it, from curb appeal, low tenant turnover, and fewer headaches from deferred maintenance, just to name a few.

So I totally get the "Vested" approach in choosing service providers, I just find myself glad that it's a concept that does not need explanation in my office.