How do you fill vacancies and prevent turnovers in your commercial properties?

1 Know your market

Before you set your rental rates, advertise your vacancies, or negotiate with potential tenants, you need to do some market research. Find out what are the average rents, vacancy rates, and tenant preferences in your area. Compare your property's features, location, and condition with similar ones. Identify your target market and tailor your marketing strategy accordingly. You want to offer a competitive and fair price that reflects your property's value and attracts your ideal tenants.

2 Market your property effectively

Once you know your market, you need to showcase your property to potential tenants. Use multiple channels to advertise your vacancies, such as online platforms, social media, signage, referrals, and networking. Create a professional and appealing listing that highlights your property's benefits, features, and amenities. Include high-quality photos and videos that show your space in the best light. Respond to inquiries promptly and courteously, and schedule viewings as soon as possible.

3 Screen your tenants carefully

After you generate some interest in your property, you need to screen your tenants carefully to find the best fit. Use a standard application form that collects relevant information, such as income, credit history, references, and background checks. Verify the information and contact the references to get a sense of the tenant's reliability, behavior, and suitability. Choose tenants who meet your criteria and can afford the rent, but also avoid discrimination based on protected classes, such as race, gender, or disability.

4 Negotiate and sign a solid lease

Once you find a qualified tenant, you need to negotiate and sign a solid lease that protects your interests and outlines your expectations. A lease is a legal contract that binds you and your tenant for a specified period, usually one year or more. It should include important terms, such as rent amount, due date, late fees, security deposit, maintenance responsibilities, insurance requirements, renewal options, and termination clauses. Make sure you and your tenant understand and agree on the lease terms, and sign it in front of a witness or a notary.

5 Maintain your property and relationships

After you sign the lease, you need to maintain your property and relationships with your tenants. Keeping your property in good condition and responding to repair requests quickly and efficiently will show your tenants that you care about their comfort and satisfaction. Communicating with your tenants regularly and respectfully will help you build trust and rapport. You can also offer incentives, such as discounts, upgrades, or referrals, to encourage your tenants to renew their leases or refer new tenants.

6 Monitor your performance and feedback

Finally, you need to monitor your performance and feedback as a commercial landlord. Track your occupancy rate, vacancy rate, turnover rate, rental income, expenses, and profitability. Use key performance indicators (KPIs) to measure your success and identify areas for improvement. Solicit feedback from your tenants and prospects to find out what they like and dislike about your property and service. Use the feedback to improve your offerings and address any issues or concerns.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?