Experts predict hard times ahead for commercial real estate, with the commercial vacancy rate reaching an all-time high of 5.7%.
Although this figure’s higher than ever before, it does mean that over 90% of properties will still have tenants.
Make sure you’re on the right side of the statistics with these commonsense tips on how to reduce the vacancy rate for your properties.
1. Keep Your Buildings in Good Repair
A run-down building’s one of the first things that your tenants’ clients notice. So, they can’t afford to rent from a landlord who lets things slide.
Whether you want to keep your existing tenants or find new ones, well-maintained, tidy, and up-to-date buildings are essential.
One way to achieve this is by hiring a handyman. How can this help you? Go here to find out: https://www.handyman-ogden-majestic.com/blog/how-a-handyman-can-make-your-commercial-building-more-appealing.
2. Charge Reasonable Rental Rates
If your tenants have a habit of upping and leaving the minute their lease expires, your rental might be too steep. Compare your prices with other buildings in the area to see how you weigh up.
Remember, empty buildings cost money, and finding new tenants is risky. Rather take a cut in your profits and negotiate with your tenants to stay on.
3. Incentives Can Benefit Your Vacancy Rate
When the end of your tenants’ lease periods starts to draw near, try to sweeten the deal for them. Offer to reward lease renewals with some type of incentive.
You could offer a month at half price, or volunteer to pay something toward their utility bill every month. Rewarding good tenants not only saves them money but also shows that you appreciate them.
Losing a little rental income’s far preferable to finding and vetting new tenants all over again, and certainly beats an empty space in your building.
4. Implement Stringent Vetting Procedures
If you are looking for new businesses to lease your premises, one way to make sure they stay is by vetting them thoroughly beforehand.
You should look into their company background, their tenancy history, and do a criminal background check beforehand.
Well-established, reputable business people know that it’s bad for their business to change premises too often. So, they’re bound to stay put longer and pay their bills while they’re there.
5. Stay on Good Terms With Your Tenants
Don’t be like the school headmaster who only shows up when there’s trouble afoot. Get to know your tenants and show an interest in them.
It’s a lot harder for people to leave premises where they feel liked and appreciated. Make them wonder if they’ll ever find another landlord as friendly and accommodating as you.
A Few Last Pointers
A low vacancy rate is the only way to make money from investment real estate. So, it makes sense to do whatever it takes to keep existing tenants.
Marketing strategies, hiring a real estate agent, and vetting new tenants takes time, and time truly is money when your buildings are standing half empty.
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