Madison Management: Understanding The Tenant Lifecycle

The profitability of a commercial property depends on finding and retaining the right tenants as property occupants. In fact, commercial property management becomes quite an easy affair if the property owner develops a keen understanding of the theory of the tenant lifecycle. Tenant lifecycle refers to all the stages the commercial property management needs to pass since its decision to invite a set of tenants all the way till the end of their occupancy.

Here are the ten stages which form a tenant life-cycle.

1.Profiling

The primary duty of the property management service is to determine the right segment of tenants who would be the most likely to be interested in the particular commercial property. This would facilitate the development of perfect marketing strategies.

2.Promotion

The next stage involves the design of a promotional program which focusses on communicating the benefits of the property relevant to the target group, using a wide range of marketing channels to maximize outreach.

3.Initial Screening

As tenant applications begin filtering in, the third stage of the cycle is to screen the applicants according to the compatibility of their credentials with the requirements of the landlord. Property management services like Madison Management also advise taking zoning laws into account when screening tenants, to avoid any legal problems.

4.Demonstration

The fourth stage of the cycle involves hosting the visit of a screened tenant. The landlord or reliable property managers should meet the interested tenants personally and show them around the property.

5.Final Screening

If the prospect seems interested in the fourth stage, the next stage involves a thorough screening of the prospect which includes his or her background, credit history, livelihood and income and criminal records.

6.Lease Making

The lease making procedure starts in the sixth stage. The terms and conditions of the lease are laid under elaborate negotiation between the landlord and the tenant, and the keys to the property are handed over to the new occupants after the lease is duly signed by both parties.

7.Maintenance

The seventh stage, usually the longest, refers to the duration of occupation of the property. The property management firm is required to manage regular rent payment, premise maintenance and solving various problems faced during the occupancy. The success of a landlord-tenant relationship mainly depends on how this stage is handled.

8.Eviction Noticing

This stage marks the end of the landlord-tenant relationship. Either the tenant decides to move out and stops paying their rent, or the landlord decides to evict the tenants due to the violation of the terms of the lease. Property management services like Madison property management are extremely useful when it comes to resolving legal complications.

9.Lease Dilution

The penultimate stage witnesses the tenant vacating the property, after the lease has been diluted and all financial accounts have been closed.

10.Rehabilitation

The last stage refers to the preparation time of the property for inviting a new set of tenants. Repairs and renovations are made to enhance the value of the property, before new prospects are approached.

I am John Daniel, A US based Real Estate Professional and Blogger. With experience in real estate of more than 10 years, the above mentioned article is solely based on my experiences with madison management .