Are office buildings going to the "dogs?"

You've probably seen articles touting progressive pet friendly company policies that allow, even encourage employees to bring fido to the office.  When I read those articles, I can't help but wonder whether the company checked with their landlord to see if it was OK with the landlord to have the employees bring their dogs to work.  I may be reaching here, but I doubt fido is being welcomed with open arms by the owner of just about any building.

Why, you may say, wouldn't it be OK to have man's best friend around at work?  Our four legged friends help us relax, the studies say, our blood pressure is lower with them around, etc etc.

All I can say is:  there is a reason why apartments charge pet deposits and even higher rent for those residents who have pets.  Carpets get ruined, waste has to be picked up, dog bites happen, not to mention the insurance, allergies and other issues relevant to companies who would bring their dogs into common areas shared by other tenants.    

So far it hasn't really been an issue for us, aside from one "therapy" dog in one of our properties, most of our tenants leave fido at home.  I'm glad, and I'm also hoping our buildings don't have to go to the dogs to keep our tenants happy.  I have a feeling that may make me old fashioned.  Oh dear.

Food for Thought - is Expertise an Illusion (or even a DE-LUSION?)

In the most recent edition of IREM's Journal of Property Management, a thought provoking article "Expertise and the Illusion of Knowledge" took the position that a person's Expertise, and in our case specifically Property Management Expertise, can REDUCE the quality of your decision making and the accuracy of your work.  How, you may ask?  The article defend its thesis by citing a book published in the last few years by Dr. Atul Gawande called The Checklist Manifesto.  Dr. Gawande argued that the same concepts that prevent errors by pilots, the extensive pre-flight checklist, should be adopted by medical professionals, specifically surgeons, as a way to reduce medical errors that have the potential to ruin lives.  Surgeons pushed back hard.  Look at their long training, their cumulative skill, their EXPERTISE!!! they said.  Who could question that they know what they're doing???  Yet Dr. Gawande provided lots of research that supported his checklist argument, not the surgeons expertise argument...sorry about that.

So if it's good enough for pilots, and if eventually medical practitioners begin to implement checklists to improve the accuracy of their life saving work, why on earth wouldn't  real estate professionals, and again, specifically Property Managers, also buy into the idea of improving our work through checklists?  I can't think of a single reason why not.  I completely agree that we consider ourselves "experts" at our peril, that we should always question what we think we know.  Only by doing that can we truly grow our expertise.

I can also think of times when sometimes there is no right answer, and when we have to find a creative solution.  In that case, expertise may carry us through.  In addition, those of us who are in the property management trenches every day know that it's hard to find time to work "ON" the business (i.e. create the checklists), not just "IN" the business.  I can just hear our customer's saying:  "So what, do it anyway."  And I agree, and so we do, through our huddles, our ongoing training, and yes, the checklists we have so far.  Are we perfect?  Hardly.  Are we perfectly committed to improvement?  Absolutely.

The Checklist Manifesto:  How to Get Things Right is available here at Amazon

 

Tenant Retention Tips - (CBC Blog) Part II

Posting from the CBC Blog again - Part II of tenant retention tips - Enjoy!

August 15, 2016

Tenant Retention Tips: Part II

The Coldwell Banker Commercial® organization offers these tips in continuation to “Tenant Retention Tips: Part I” to assist in retaining tenants:

1. Communication is Key
Make sure you communicate with your tenants on a regular and consistent basis throughout their tenancy.  Let them know if there is a scheduled maintenance such as parking lot cleaning.  Tenants don’t mind being inconvenienced once in awhile as long as they are aware and can make the necessary arrangements.
2. Ask What Would Make the Building Better
Another great way to increase your relationship is to speak to your tenant and inquire as to what would make their environment better to work in.   Tenants might have ideas, but don’t openly present them.  Many times, it may be something really small that could make the world of difference.  If it is a bigger item, it may be possible to amortize the cost in the general operating expenses if all the tenants will benefit from the suggestions.
3. Send Your Tenants Anniversary and Holiday Cards 
This is a simple thing that can go a long way.  Write your tenants a hand-written note inside.  Another idea is to give your tenant a small gift, like a DVD player, when they first move in.  It is small, but they will realize you are not an ordinary landlord.
4. Improve Property Energy Efficiency
In today’s market, efficiency and sustainability are very current issues that more and more tenants are acutely aware of. If your property is inefficient, cold or drafty, a tenant won’t want to extend their tenancy.  That inefficiency can translate in higher operating costs. There are many federal programs and tax advantages to retrofits of properties that result in efficiencies and reduced operating costs. These will go a long way to helping retain tenants.
5. Improve Property Grounds  
Maintaining the front door to your property and the common areas where people walk thru on a constant basis is an often overlooked and important tool to help retain tenants.  Plant flowers in the front of your property.  Keep the parking lot clean, the grass mowed and the bushes trimmed.  Make the property inviting to come into work.
6. Offer a Re-Signing Bonus for a Lease Extension  
The simplest and easiest way to incentivize your tenants to stay is to offer them a discount for signing a new long-term lease.  Consider how much money and time it would cost you to find new tenants.  Look to incentivize your tenants for signing up early, possibly with free rent, a larger tenant improvement allowance, reduction of security deposits, an offer to refresh paint or carpet during their lease term, etc. (Note: be proactive with such a program and start two years in advance of the expiration of their lease, to encourage them not to look at other options).
7. Rent Reductions
If a tenant gives notice because they can’t afford to continue renting the property, consider revising and extending their term to help get the rent down or draw a new lease up for a longer period of time. Repositioning the lease is better than having them move, potentially losing rent revenue or the required new and likely larger capital dollars to make the space ready for a new tenant.
8. Why Are They Looking to Leave?
Always cross-examine the tenant on why they want to leave when they give notice.  It’s vital to find out their objections to try and overcome them. Sometimes it’s an issue you can’t do anything about, such as lack of space, but other times it’s something simple that’s easily resolved and encourages them to stay.
View Part I: Tenant Retention Tips
By the Coldwell Banker Commercial Organization