Minimising Tenant Turnover by Jane Lestone
One of the keys to your success as a commercial property investor to minimise tenant turnover is that your property should be occupied for as long as possible. Unfortunately, commercial properties tend to stay vacant longer than a residential property, so it is very important to have a professional property manager keeping an eye on this.
This doesn’t mean calling the Lessee a few months’ before their lease ends and seeing whether they’d like to stay on. This should be managed throughout their entire tenancy and at PURE this is one of the items we are very mindful of.
Regular inspections play an important role in minimising turnover as it builds a relationship between the Lessee and the agent which should then be passed onto the owner. The agent should get a feel for how the tenancy is going and what their plans are for the future. Inspections are also a great time to see if there is any routine maintenance that needs attention. Staying proactive with repairs and maintenance will also ensure a happy Lessee which will hopefully encourage them to stay on for another lease term.
Keeping good tenants and keeping them happy not only reduces your tenancy turnover but is also likely to reduce the wear and tear on the property, improves income and most likely lowers your expenses.
As an investor you need to be aware of what your expenses will be if your property becomes vacant. Apart from loss of rent their will also be professional photography, advertising, leasing fees, incentives and any upgrades required. Incentives need to be kept in mind not only when trying to entice new tenants to properties but when lease renewal negotiations are occurring.
Obviously current market conditions have a significant impact on vacancy periods, you need a professional manager on your side to keep you informed of where the market in your area is up to.Unfortunately, this is one item that is out of your control but always needs to be considered whether your property is vacant or not.
Finally, one of the most important points to consider is proper tenant selection. A consistent tenant screening process is a valuable tool for an owner and at PURE we offer this. If you put the right tenant in at the start you hopefully will keep them there for a long time to come.
Combine all these and you will be doing all that you can to minimise your tenancy turnover.