Do you recall the last time you took care of your tenant relationship management and called your tenants to ask if they are happy with their premises? Or even paid them a visit to see if they had any concerns about your property?
There are four equally important reasons to call your tenant today rather than tomorrow:
- Secure your cash flow
- Understand the local property market
- Boost your marketing
- Avoid unexpected operating expenses
Change the way you take care of tenant relationship management.
In order to improve tenant relationships, you should communicate with them or pay them a visit. It demonstrates that you care for your tenants and want to provide the highest quality of service to them.
1. Secure your cash flow
According to JLL’s survey, you should contact your tenant, as it takes 2 years to reclaim the lost income of one lost tenant. Another survey, by Kingsley Associates in 2011, shows that the likelihood of a lease renewal is tripled when tenants are sufficiently satisfied with their management.
The same survey states that it is the overall satisfaction in the relationship between landlord and tenant that matters, not just the premises.
By getting constant feedback from your tenants – business needs, concerns, development needs etc. – you will have insight into your tenant’s business. This gives you time to plan for their changing circumstances and to offer your tenants appropriate solutions before they give notice.
2. Understand the local property market
You can get firsthand information on the local property market, including needs, trends, and key players, by interacting with your tenants. It’s almost impossible to get your local market knowledge any other way than by direct communication with your tenants.
Local market knowledge allows you to better prepare your property investment and development decisions, resulting in higher yields and increased property value. Alternatively, you might look for undervalued properties that you might transform into profitable investments.
3. Boost your marketing
If you keep your tenants happy, they can be a great marketing asset.
They are typically well-connected in the region through business connections and personal networks, which could be extremely beneficial to your company. You will save money and time on your marketing efforts if they are happy to recommend you and your company.
Business parks are a classic example.
Companies operating on the same domain get synergies and innovations by working together in a cluster. Another example is getting an attractive shop as a tenant to your retail park or shopping mall.
It will attract others to sign the lease. The benefit of a neon sign of a known brand is tremendous. The same effect can also be achieved through the low vacancy rate at your retail park. It is all about the BUZZ..
4. Avoid unexpected operating expenses
It’s important to get your tenants to take good care of your property and to notify you of any necessary repairs before the situation worsens.
Active and continuous communication with tenants is essential to keep costs under control.
Systematic collaboration with your tenants and documented feedback gives you a good foundation to analyze the shape of your premises and properties well in advance.
Keeping operating expenses manageable may turn average property to a top property.
Gaining and maintaining a professional reputation in the domain, like any other, takes time and effort.
If you have a good relationship with your tenants, they will notify you if something goes wrong. Taking your tenants seriously will also increase their trust and respect for you and your property.
The beauty of better tenant relationship management is that you can get started right away and start enjoying the benefits. Pick up the phone or pay a visit to your tenants right away.
Demonstrate that you care for their company and want to help them succeed even more.
Tenant relationship management, of course, necessitates a systematic and strategic approach in the long run. You can start by asking them the following simple questions:
- How does their space contribute to their business? What could be done to improve their situation?
- Are they likely to expand? Or to open new locations?
- Have the requirements for the space changed? Do they require special technology or service in the future?