Entice Tenants To Stay Put And Lower Turnover Rates
A high tenant turnover in commercial property can wreck havoc to the dream of realizing a regular and steady income from your property. Thankfully, you can keep your tenants happy and entice them to stay.
If you’re looking for a way to create wealth and build your monthly income, you can’t go wrong by investing in a commercial building. As the demand for office space and stores grow, the rental income on such properties grows as well.
However, an expert from forte-santiago.com a commercial cleaning provider in San Diego, remarks that you need to take extra measures to entice them to stay and lower the turnover rates. Other than keeping the premises clean and spotless here are some proven ways to reduce tenants’ turnover rates.
Ask for feedback
Naturally, everyone is likely to assume that their property lives up to their tenant’s expectations. While your tenants might not be outspoken, don’t take their silence to mean that it’s all rosy. It may be that they prefer not to rock the boat, but behind the scenes, they’re formulating an exit plan. Rather than gamble with the truth, face the situation and ask for their opinion.
The feedback might reveal a few painful truths, but it’ll help you stem the turnover. Maybe the rent is a tad higher for the neighborhood, or the property isn’t well kept, and it dings their professional image. Only by learning of these problems can you move to solve them and convince them to stay.
Be careful with the rental increases
The issue of raising rent often calls for a careful balancing act, especially when operating in a competitive market. One wrong move could have your tenants leaving in droves. According to the Bureau of labor and statistics, the rent index rises at a rate of 3.6 percent annually.
However, this doesn’t give you a leeway to hike your rates arbitrarily. For the best results, you need to formulate a plan. Look at the current market and see how your prices compare. If they are below the market rates, you can consider raising them.
Again, consider the last time you raised rent and be mindful of your tenants’ ability to cover the increase. If they can’t meet the new rates, can you afford to lose them? Above all, you need to communicate the decision and justify the move to increase the rates.
While commercial properties hold the promise of regular income each month, having a high client turnover can prove ruinous. Therefore, you need to make every effort to keep the turnover rates to the minimum.