Maximizing the value of your property
When entering the commercial real estate market, owning a property is as much about the people as it is about the building. Tenants, just like the property itself, have needs. The two have a direct relationship: Ignore the property, and tenants leave. Ignore the tenants, and the property suffers.
The combination of a well-managed property and strong people skills not only strengthens the tenant/owner relationship, it also raises the value of the asset. In other words, a happy building is a happy tenant, and a happy tenant is a profitable investment.
Keeping the property happy
First and foremost, it’s important to take stock of the property itself with regular inspections. Be aware of any property needs that may need attention, such as air conditioning, plumbing, pest control, and safety issues. If there is any work that needs to be done, know the contractors who will be doing the work. While they’re working in and around the property, they are a direct reflection on you.
At the same time, it’s important to not take the building’s appearance for granted. Consider the curb appeal of the property, as well as what’s on the inside. Adding or improving landscaping in addition to offering amenities like high-speed Internet service or Wi-Fi can go a long way in not only attracting the right tenants, but also convincing good tenants to stay rather than relocate.
Keeping the tenants happy
When it comes to keeping tenants happy, communication is key. The biggest complaints from unhappy tenants are usually poor communication and any misunderstanding of terms. To address this, it’s important to:
- Create an email or text alert for maintenance work that’s to be done.
- Keep tenants aware of changes being made to the property through regular communication, such as a newsletter.
- Respond to complaints, questions, or concerns promptly. Twenty-four hours is a reasonable amount of time.
- Take the time to meet the tenants and to listen to their concerns and suggestions. Thank them for their suggestions in writing. Treat them like investments.
- Make it easy to be your tenant. Establish a system of online rent payment, or an option for monthly, semi-annual, or yearly automatic withdrawals.
- Create documentation of all contact between yourself and a tenant. It’s always a good idea to follow-up a casual or planned meeting with notes so that all parties are on the same page.
Keeping yourself happy
While it’s impossible to prepare for every issue, it’s always a good idea to address problems before they become a crisis. Being proactive will alleviate many of the headaches associated with owning a commercial property.
If the management of your property is too large of a task, surround yourself with good people who can represent you and your vision professionally. Anything you can do to add value to your asset is a win for you and your investment. The property management team at Morris Southeast Group has a history of adding value to office, industrial, flex/warehouse, and retail properties.
For a free consultation or to learn more about our property management services, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at kenmorris@morrissegroup.com.
Tags: Commercial Tenants Happy
