Some areas in Maryland are experiencing commercial real estate vacancy rates as high as 17.7%. Before this trend hits Upper Marlboro, learn how to retain tenants. Leveraging lease renewal strategies can increase your occupancy rate.
A strong occupancy rate can improve your earning potential and ROI. Not sure how to retain commercial tenants? Read on for the tips you need to succeed as a commercial landlord.
Research Local Commercial Real Estate
Get ahead of competitors by researching commercial real estate trends. For example, global coworking space inventory could grow by 31.3% by 2028. These spaces play a major role in the commercial real estate market.
Recognizing similar trends can help you detect opportunities for expansion or change. Keep track of:
- Local rental rates
- Local and national vacancy rates
- Economic indicators
- Common amenities in similar properties
Use the information you collect to complete a rental analysis. Adjusting your rental rates can help you remain competitive. You can avoid under- or overcharging (leading to lost funds or lost tenants).
One of the easiest ways to scare commercial tenants away is to set a high rent increase. Instead, talk to your renters. Ask what you can do to meet their needs. Your tenants may decide to stay if you're willing to compromise.
Communicate With Commercial Tenants
Use an online tenant portal to keep up with tenant inquiries. Tenants will recognize that you care about their concerns. If you're unresponsive, they may leave and look for a more helpful landlord.
Using a portal will streamline communications. Try to respond promptly and professionally. This will encourage strong tenant relations.
Show tenants you truly care by going above and beyond. Exceed their expectations by leaving personalized notes during the holidays or hosting building-wide events.
Give tenants a 90-day notice when their lease is about to end. This will give them a chance to explore their options or negotiate the rental rate.
Improve Your Commercial Property
Ensure your commercial property stands out from others in Upper Marlboro. Choose innovations that increase the property's value. For example:
- Upgrade the entryway
- New flooring
- New energy-efficient windows
- Renovate small spaces
Keep up with property maintenance requests. Schedule inspections and complete preventative maintenance tasks as needed. This will reduce the need for more expensive renovations.
Offer Incentives
Offer incentives to encourage more lease renewals. These include:
- In-unit upgrades
- Gift cards
- Waived fees
- Rent abatements
- Fit-out contributions
Consider offering cleaning services or carpet replacement when tenants renew their leases.
Hire a Property Management Company
Instead of applying these tips alone, outsource. Work with a property management company to improve tenant satisfaction rates.
Happy tenants will want to stay, knowing they can depend on you when they need help. Your property manager can respond to their needs on your behalf.
Outsource These Lease Renewal Strategies
Applying these lease renewal strategies will boost your occupancy rate. Your earning potential will increase as marketing and tenant screening costs drop. Use these strategies to improve your ROI today!
Remember, you don't have to apply these tips alone. Instead, outsource to a property management company. Our team at PMI has 20 years of local management experience helping property owners like you.
Rely on our proven methods and state-of-the-art technology. Contact us today to retain your commercial tenants!
