Imagine tomorrow, your commercial tenants in Tampa Bay turned around to you and explained that they were leaving your premises. It sounds like a worst-case scenario, but it's a vital question that every landlord must consider.
Commercial real estate is unpredictable. Your primary goal is to protect your investment, which means securing long-term tenants for your leases.
Here are four lease renewal strategies to help you do that.
1. Research the Market
Understanding the Tampa Bay rental market will help you determine how to secure that lease renewal. It will also tell you more about what the competition offers and what you need to do to stay competitive.
Research current market conditions and pay close attention to price trends. If rates have declined but you can't lower yours, you may have to consider other ways to incentivize your tenants.
This market research will also help you see what facilities your competitors offer. You may need to invest in a few upgrades to make yours more appealing to tenants.
2. Offer Flexible Lease Terms
Flexible lease terms are attractive to businesses. Many worry about overcommitting themselves to commercial premises when they may experience unexpected growth or other changes in the future.
One way of offering flexibility is by providing space changes during the lease, either for expansion or downsizing. You could also offer shorter durations, so tenants are only locked into a lease for as long as they'd like.
All this makes your property more appealing and makes your tenants less likely to switch. Plus, it helps attract new tenants.
3. Set Up a Tenant Retention Program
A specially designed program to retain tenants is vital if you want to see lease renewals. These programs are about implementing systems and processes to keep your tenants happy.
For example, you could offer an online portal where tenants can note and track problems. This would make reporting maintenance issues easier and faster.
Discuss the additional amenities needed with tenants and plan a timescale for implementing those. By showing tenants that you can listen to their concerns, they'll see you as a trustworthy and dependable landlord.
That will help when it comes to the lease renewal time.
4. Create Early Renewal Incentives
If your lease renewal is upcoming, start speaking to your tenants as early as possible about their plans.
That will allow you to create some incentives before their lease is up. If the incentives are tempting enough, you may even be able to secure an early renewal.
The obvious incentive is a rent discount. However, you can suggest other financial incentives, such as a rent-free period, waiving fees, or other expenses.
Always weigh the costs against securing that new lease contract. It could be worth the investment if you don't have to spend money marketing your property.
Proven Lease Renewal Strategies
You need to be proactive when it comes to securing commercial tenants. Use these proven lease renewal strategies today to help you. Having long-term tenants is the best way to boost your property ROI.
PMI Tampa Bay has developed a streamlined property management service for commercial landlords. We can help you get more from your property while removing the everyday demands.
Find out more about how we can assist you by visiting our services page.
