Hang on

Keep your tenants right where they are.

Retaining tenants is always a priority for building owners and property managers. In a soft rental market, though, birds in hand become even more valuable. To encourage tenants to stay put during times of low occupancy, many property owners offer concessions such as free rent. This strategy can make sense, as several months with no rental income may be likely anyway if the tenant leaves for a better deal elsewhere. Capital improvements also are important, especially in higher-end buildings. But there are other less-costly strategies you can employ to encourage tenants to stay put.

The most fundamental low-cost tenant-retention tool? Good communication. Keeping in frequent contact with tenants gives you information on what’s important to those who are paying rent. Whether you formalize the process with regularly scheduled meetings or just make an effort to touch base often, it shows you care about your tenants. Ask them if they are experiencing any problems. And regardless of who in an organization contacts you most often, make sure you talk frequently with that entity’s decision maker. These often are not one and the same.

People understand things break. How you react when they do can make a big impression–positive or negative–on tenants. At a minimum, strive to address problems quickly. Bringing a little creativity to the situation can also earn you extra points. For example, if the air conditioning breaks, delivering ice chests filled with cold drinks can put smiles back on tenants’ faces.

Businesses are increasingly demanding flexibility and control over their workspace. The more control you can put in tenants’ hands–things like reshaping their space and command of lighting and temperature–the happier they will be. And a happy tenant is a tenant who is one step closer to renewing a lease.

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REALTORS®, visit www.texasrealtors.com.