Thursday, June 7, 2012

Dump Your Unprofitable Clients in Commercial Real Estate

business woman with hand raised
Say no to disruptive and unprofitable clients!

Some clients in commercial real estate are just not worth the time and the effort that you put in to them, or apply to their property.  When you set some solid rules to qualify your ideal client, you can move into a better class of listings and commissions.  Here are some tips from our Newsletter.

What is an unprofitable client?

Here are some ideas:

  • They own single small properties that are hard to rent or sell
  • They will not listen when it comes to your recommendations to improve the property before sale or rent
  • They will not commit money to their property marketing campaign
  • They set their rents and prices with no regard for what you are saying about the current market conditions in the local area
  • They talk to many agents and listen to others before they give you any attention
  • They ask you to do far too many things in the marketing of the property, removing you from other clients and better properties

You do not need these clients; there are better and more realistic people out there for you to serve as clients.

So What Can You Do?

The obvious answer with these clients is to respectfully decline their business.  If you have been working the listing for some time and nothing is happening because they will not adjust their price or accept your recommendations, then tell them it would be better for the listing to come to an end.   Let some other agent waste time with the client!

The Commercial Property Market Today

The property market today is quite selective and the tenants and buyers of property are very aware of what they want and how much they should pay for it.  Commercial property is not an experiment, it is a distinct business, and it is your livelihood.

Protect your time and your interests as a professional commercial property agent.  If something does not work as a listing then drop it.  In the process give the client the chance to accept your recommendations, and then move on.  Give the client your recommendations in writing so they have something that they cannot dispute or deny.  When they eventually sell or lease their property it will likely be on terms that are similar to your recommendations.

Need some more ideas in Commercial Real Estate Agency?  Get our free Newsletter here.