More office space is sitting vacant in the US than at any point since 1979. The national office vacancy rate rose to a record-breaking 19.6%. To keep your own vacancy rates from rising, get tenants to renew leases.
Not sure how to encourage a tenant to renew a commercial lease? Read on for the lease renewal strategies you need to ensure success! Watch your occupancy rate and ROI rise today.
1. Improve Tenant Communication
Foster stronger landlord-tenant relations the second a new tenant moves in. Provide them with access to an online tenant portal. Using a portal will streamline communications.
This software allows you to send messages through multiple channels. You can save time and money by automating commonly used responses. You can respond to tenants within seconds.
If tenants struggle to reach you with concerns, they may grow frustrated. They may move out and choose a more responsive landlord instead.
Don't let tenants feel abandoned. Check in on them throughout the duration of their commercial lease. Ask if there's anything you can do to improve their tenant experience.
After a few months, ask tenants for their feedback. They may ask for property upgrades or other improvements. Act on their feedback to show you care.
2. Meet Their Business Needs
Talking to your current tenants will help you meet their business needs. For example, your tenants may request new property amenities. Choose upgrades that enhance the property's value, such as:
- Improved curb appeal
- Optimized parking
- Accessibility
- Security measures
- Modernized interiors
- Lighting and premium fixtures
- Upgraded mechanical systems (like HVAC)
- Sustainable practices (like energy-efficient windows)
- Modernized property amenities
Modernized amenities include conference rooms and fitness centers. These features will attract businesses looking for added conveniences.
Complete a rental analysis. Research other commercial buildings to remain competitive.
3. Review the Lease Terms
Give tenants a 90-day notice when their lease is about to lapse. Review the lease terms and ask if they're willing to renew.
Remaining proactive can improve your tenant retention and occupancy rates. Assess their changing needs. For example, some tenants may want to change their lease terms.
Consider offering a monthly, one-year, and two-year lease option. Encouraging tenants to stay for two years will give you peace of mind. You won't have to negotiate new terms as often.
If you're struggling to negotiate with tenants, hire a property management company. They can handle this process on your behalf.
4. Maintain the Building
Don't allow your investment properties to crumble. Neglecting routine inspections and maintenance can lead to more extensive repairs. You'll waste money if you delay completing maintenance projects.
Tenants want to stay in commercial buildings that are in good shape. It's your responsibility to provide them with a safe place to work.
Hire a property management company that has connections with South Jersey contractors. They'll keep up with inspections and maintenance on your behalf.
Apply These Lease Renewal Strategies Today
Improving your tenant retention rate will maximize your earning potential. Apply these lease renewal strategies to keep your current tenants. Otherwise, outsource to a property management company.
Our team at Sojay Property Management has 20 years of industry experience. We use state-of-the-art technology to enhance our award-winning services.
We can improve your profitability. Contact us today to generate more lease renewals.
