|Understand your tenants needs|
In commercial real estate property management the tenant communication process is quite important to the stability of the property and the income generated. As a priority, the property manager engaged for the portfolio should be comprehensively connecting with all tenants and monitoring the leases accordingly. All communications with tenants should be documented and tracked for progress. If you manage a lot of properties at any one time, this can be a big issue.
So the tenant management process is quite specific. The level of interaction with the tenants will vary from property type to property type, and location to location. Some properties create the need for greater interaction and tenant control.
Ultimately the property with a stable tenancy mix and tenant profile will produce far better income and lower vacancy factors. It is interesting to note that a property manager with a great number of properties and or tenants in their management portfolio is likely to struggle with the time required to communicate with the tenancy mix. Ultimately that can mean that a property and the occupancy will suffer.
Here are some things to incorporate into your tenant communication and management process.
- Understand the differences in each property and how the tenants need to be controlled. As a general rule, a retail property will require far more control as will the tenancy mix. Retail tenants tend to be quite active and sometimes volatile. The success of a shopping centre will be centred on the stability of the tenancy profile. It is not unusual for a shopping centre manager to meet with all of the tenants at least once per week.
- Understand the permitted use factors that apply to the tenant’s leases. The permitted use should be quite specific so that the tenants can be matched within clusters, and locations. A successful tenancy mix is usually a reflection of successful clustering and permitted uses.
- Know the essential terms and conditions of each tenants lease. In a larger property this can take considerable time however the process needs to be done. Each lease will contain certain critical dates and responsibilities relating to the tenant and the landlord. All of those factors should be understood and responded to in a timely way.
- Many tenants feel the pressures of business operations, expansion, or contraction. When you meet with the tenants regularly, you can control those situations more effectively and retain the tenants for the long term as they move through their business pressures and changes. You may be able to relocate a tenant to a better location in the property rather than lose them to a competing property.
So there are some important things for you to track and control. A successfully managed commercial or retail property is usually a reflection of the skills and actions of the property manager.
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