When investing in a commercial real estate property, occupancy is significant for better returns. Therefore, it would be best to improve tenant retention to make the most of the available options.
But lockdown, social distancing, and the work-from-home situation have changed how the CRE industry used to work. These changes are now essential to keep the tenants safe. But they can also impact the occupancy rate or tenant retention.
This is because people no longer find it safe to go to work or shopping, which can cause the tenants to leave the building.
As an investor, you must understand the options that will benefit you to use the available opportunity best. There are specific tips that will help maximize occupancy rate and will also work well for retaining tenants.
Check out the guide to get helpful information. It will help you get explicit-cut knowledge of the choices to grow your investment.
Tips to maximize the tenant retention
As a real estate investor, you must keep your property occupied throughout the year for better returns. However, if you are facing difficulty, here are tips that will be helpful for you to improve tenant retention.
- Better communication
A great way to maximize retention and occupancy is to have good building communication with all the tenants. Thus, it is essential that you have regular contact with the tenants; otherwise, they will feel abandoned by your team and you.
In addition, they will all be worried about returning to the building even when it is entirely safe. Thus, to suit the tenants’ concerns, you must occasionally communicate with them.
Communicating through multiple channels with the tenants will help you get your message to them. But here, multichannel communication can be time-consuming.
The best you can do is make use of building communication software to have direct communication with all the tenants. Using the software, you can send messages to multiple channels without sending them numerous times.
The building communication software will also save the draft of the commonly used statement. This will help you get important information to the tenants directly in seconds.
Good communication will help build stronger connections with the tenants of the building. This will give you confidence and safety. Also, it will improve tenant retention and occupancy rates.
- Manage the space flexibly
Offering flexible spaces to the tenants will be fantastic. The tenants are now shifting their space needs continuously. They require room for social distancing or the expansion of the business.
During such a time, the slightest change can make it challenging. The uncertain new normal has made the tenants hesitant to choose the building when they need more flexibility for growth.
During such a time, you must manage your space flexibly to retain all the current tenants and boost occupancy rates by bringing in new tenants.
If you wish to have flexible space management, you need to visualize the changes, like moving the tenant to the smallest space or combining the spaces to make ample space.
No doubt, the process can be time-consuming and frustrating. But you have to connect with the architects to get the best options.
Use suitable software to help you visualize things and create a scenario that will help you see how they can change their space with the tracking plans. You can quickly see the areas available for the tenants to expand or move into a Flexible space management will be helpful for you to meet the needs of the tenants in uncertain regular times and maximize tenant retention and occupancy.
- Manage the lease proactively
Besides flexible space management and good communication, you must improve tenant retention and occupancy by proactively managing the lease.
For example, when the lease comes with a renewable period, the tenant is more likely to leave your building if the team does not contact them before to assess the changing needs.
When you stay in touch with them and know about their needs, they will be encouraged to stay. This will reduce the inoccupancy.
The lease terms must be proactive to guarantee that the tenants renew the lease. Therefore, they must contact the tenants before the lease expires.
Your team must stay in touch with the tenants to enquire about the issues the tenants are experiencing or if they require any changes that can be made to improve the experience and convince them to stay.
It can be challenging for your team to keep on top of every lease that is ending, so using the software available in the market will be beneficial for you to make the right decisions. It will help make things easy as which lease will expire soon and also set reminders.
With this, the team can stay updated about the lease agreements and contact the tenants before the lease agreement ends. Thus, it increased the chances of the tenants renewing the deal.
- Maintain the building right
A well-maintained building will always attract tenants. The tenants would like to stay there. After all, everyone wants to rent a building in good shape. It is a new normal that they want to live in a healthy structure that can keep them safe.
If you are keeping the maintenance up to date, you likely have an asset that will stay occupied. You need to for timely replacement and repair services. When the investments are large-scale, it can impact the creation, making the tenants lease the property.
To keep the building in the best possible way, you must conduct regular primitive maintenance to fix the problems before they become severe.
First, you must create a preventive maintenance schedule and guarantee the tenant is well taken care of. Then, you must schedule warranties and go for timely repair and maintenance services.
It will take time to remind your team to stick to the schedule. So better use software that will help you keep things up to date and encourage the tenants to renew the lease. With this, you can ensure a building is maintained quickly and make the most of the investment.
- Work on your HVAC management
HVAC management is highly beneficial when you have to increase retention and the occupancy rate. The tenants are most likely to give little thought to your HVAC system. A clean and healthy air system will always be preferable for the tenants.
If you don’t manage the HVAC system properly, it can become a breeding ground for disease-causing germs and bacteria, making the building safe for the tenants. The tenants search for healthy options. Thus, it can significantly impact retention and occupancy rate.
It shows that your HVAC system keeps the building safe and healthy. You must manage the property well with regular cleaning, upgrading the new system, switching out the filters, etc.
Remember, the management of the HVAC system can be expensive and time-consuming. But the process will be straightforward when you wish to get expert help occasionally. You need not worry about spending much money all at once.
When the property has good tenant retention, you can profit from it. Thus, the investment will be worth it. However, if you need to renew the property to make some changes to boost the tenant occupancy rate, you can consider finding an investment in the market.
There are many CRE investment options available that will be helpful for you to acquire the necessary funding for completing the project on time and boosting the occupancy rate of the building.
If you are struggling with your tenant occupancy, then you need to come up with some strategies or loans that will make the property worthwhile for the tenants then, you can consider connecting with Private Capital Investors for assistance.
They have got a well-built reputation. They know the process that can help you know about the loan options that will work well for your specific criteria and then help you get the best outcomes possible.
In some cases, they will also advise you about the investment goals and how you can change them or upgrade them to get the best results possible. Make sure that you connect with the professional to know about the options that will be available for you to boost the occupancy rate of the building and make the most of it.