When you own a commercial property, it’s no secret that it’s a great source of additional income. If you’re clever with it, then you know there is so much more to renting out a commercial property than just leaving it to do its thing and cashing in the cheques.
Ultimately, your goal should be to reduce how many tenants you sign to your property and instead look to renew their leases, which not only means that they are settled for the long term, but you can also increase your profit.
However, if you have more than a 50% average tenant turnover, then this should be a cause for concern. As the property owner, you need to look further into why your tenants are cutting away from their lease and what you can do to secure longer lease terms in the future. With that in mind, let’s look at these 3 tips for minimising tenant turnover in your commercial property.
If you’re an absent commercial property owner, then chances are that you don’t really have an insight into what’s going on in the property, as well in the surrounding offices or buildings. It’s important to use the right property management tools to not only look after your commercial property but your tenants too.
Tenants who feel looked after, safe and secure in their commercial premises, then the chances of them extended their lease are much higher. Ensure that the property is regularly cleaned and that any issues, such as broken lighting, decor and rubbish removals are taken care of. This ensures the smooth running of the business that rents your commercial property and also puts your mind at ease that your business is being well taken care of.
In inner-city locations, pests can be a huge nuisance to a lot of properties and if your rental property has a pest issue, then this can be a cause for concern for your tenants. A lot of tenants either choose to leave a lease early or decide not to re-sign due to pest issues. When you’re working in a location that has a pest problem, even if it’s not affecting the property directly, is enough to put tenants off renting the space.
Pigeon presence, rats or mice present in basements or even just the presence of flies can be huge problems and need investigating as soon as reporting. Look at investing in some bird proofing solutions, pigeon guano removal or rat bait traps to sort the issue. With flies, you should investigate the drains and plugholes, as there could be some build-up in the pipes causing the problem.
As a commercial property owner, the management of your property should be your utmost priority. Just like any business, a rental property means that you need to take care of your customers as this will ensure that the property continues to be profitable, which is in your best interest. If your tenants feel as though the property is being poorly managed and that any complaints aren’t being taken seriously, you are absent from the property or it appears that you simply don’t care, then they have every right not to renew their lease.
Invest in your property and you’ll see a return. If you’re in a busy city centre, look at having a specialist business carry out commercial cleaning in London, Manchester or Birmingham so that your building looks clean and well maintained. If the interior is drab and dull, look at a full refurb, especially if you’re in a high-demand area. Speak with your tenants regularly and see if there are any concerns with things such as neighbours, noise complaints, water issues or access problems. Simply showing you care is enough to reduce your tenant turnover.