Only One Third of Commercial Property Tenants Are Currently Renewing Their Leases
22nd December 2017
Only one third of commercial property tenants are currently renewing their leases. The first thing to strike me about this fact was simply: why?
The second is: What should landlords be doing to change this?
My advice would be to listen, and then talk; don’t leave it to the last minute and don’t let the first contact you make be a S.25 Notice – in this digital world we seem to have lost the concept of face to face conversation. Take time to go and see your tenant, grab a coffee, and get to understand their business, find out how things are going and what their future looks like. It could be clear blue skies or dark thunder clouds, but if you don’t talk to them you won’t know sometimes until it’s too late.
Armed with what you find out you can put a plan together, in most cases, one that works for you and that works for them
The best landlords are the proactive ones, those who are willing to compromise and adapt, and it’s these landlords who have full occupancy levels, happy tenants and relatively stress-free lives.
Making yourself hard to get hold of and difficult to deal with only has one outcome; people vote with their feet – why stay when you aren’t made to feel welcome or more importantly valued?
Landlords need to grasp the concept that their tenants are their customers, treat them well and they keep coming back for more, and even more importantly they do your marketing for you by telling their contacts about how good you are.
Once you have a tenant in place, don’t just leave it at that, make time for regular contact, just to let them know you are there and that you are interested in them. Relationships dissolve really quickly if all they hear from a landlord are rent demands, service charge demands and rent review notices, it’s all too one way and way too cold.
Tenants are now, in my view, more switched on about property than ever before. The amount of TV property shows and access to information via the internet and social media gives them a higher appreciation of what’s out there and what other people are getting.
Another thing to consider is investment. Spend money on your building before it is crying out for it – no-one likes to live or work in a depressing, dirty, or uninspiring environment. It doesn’t have to cost millions and often by taking a pro-active position it actually saves money in the long term. People will play up to their environment. Give them something good and they raise their game. Give them something that’s just alright, and they won’t really be bothered about what happens to it.
It’s not rocket science, its old school common sense.