Being a property manager requires a lot of balancing. Property managers undoubtedly work for the owners and protect their interest first. However, unhappy tenants can ruin your reputation with a single phone call to the owners.
Tenant Relationships
As smart real estate managers, property managers have to realize that a building’s best assets are the tenants that occupy it and keep it vibrant. The most important work property managers do is to enhance and solidify great working partnerships that include the owners and tenants. Also, it is important to encourage friendly relations between adjacent tenants to be tenants choice by property management company orlando.
Besides working proactively to track lease expiration dates and managing renewals, property managers solicit tenants to procure feedback. This open dialog encourages face-to-face discussions among tenants and can help promote the building. For example, property managers who anticipate tenant needs are remembered and the tenant is likely to speak favorably to potential new tenants regarding the management.
Lease Negotiation
As you might imagine, the negotiation of favorable lease terms depends on who has the most leverage, tenant or landlord. Important variables tenants consider:
- The area of their leased space vs. the building area
- Length of the lease
- Tenant’s creditworthiness and operating history as a business
- The current leasing market
- The relative prestige of your brand to the landlord – especially important for retail space
- Whether the landlord is an individual, regional or national property owne
In a “tenants’ market,” they can effectively push for concessions such as interior improvements, some period of free rent at move-in and better rental rates. Conversely, a tight market with limited space gives property managers and owners the upper hand.
In any case, the tenants are going to be your staunchest allies or worst enemies, depending on how they feel they were treated.
Building Brand and Positioning
A building’s reputation impacts each tenant’s business,so it’s important to protect that brand in the marketplace. Property managers that tenants value know the competition, take good care of common areas and lobbies where first impressions count. They also know how to distinguish and market the unique features and services.
Tenant Retention
Tenant turnover erodes income quickly, and not just rental fees. Finding new tenants in commercial spaces takes some time and requires signage and improvements to attract new renters, not to mention the brokerage fees. It is far more proactive to identify tenants who have outgrown their space and develop a strategy that supports their business and ensures the owner’s continued revenue stream.