Commercial Real Estate Management Explains How to Earn Tenant Loyalty

A healthy relationship between the landlord and the tenant is the key to profitability when it comes to commercial real estate. Property owners need to understand the fact that just leasing out commercial property to a good tenant is not enough for maximizing returns from the property; the retainment of the tenant for a considerable period of time is important as well. A permanent tenancy not only saves the expenses of inviting fresh tenants, but also steadily increases the value of the property. Earning the loyalty of tenants is not difficult job for the landlord who intends to do so.

Here are a few ways that property owners can earn tenant loyalty.

1. Consistent dialogue

The property owner needs to maintain a regular dialogue with the tenant. The landlord should listen to the grievances of the tenant with care and provide assurance to solve them. This helps in winning the trust of the tenant. Of course it if assurances are made, they must be followed through with actions.

2. Liberty

The tenant should be provided a certain degree of liberty in taking minor decisions regarding the property. Although the terms of the lease dictates the rights and responsibilities of the tenant and the landlord separately; if the tenant expresses desire to bring certain changes in the structural and operational aspects of the property, the landlord should be lenient enough to permit the tenant to do so, unless the change causes any kind of loss to the landlord. This would greatly help in upholding the goodwill of the landlord-tenant relationship, fostering loyalty.

3. Involvement in developmental decisions

A tenant who has been occupying the property for quite a few years can be safely involved in the decision making process regarding the development of the property. Suggestions of the tenant should be considered with attention, which would generate a sense of belongingness in the tenant’s mind.

4. Routine inspection of the property

The landlord should pay regular visits to the property or entrust property managers like Madison Properties to do so. Any damage or resource shortage should be immediately addressed. The landlord should also take the initiative to solve any issue involving the common maintenance area. These gestures will definitely strengthen the loyalty of the tenant to the landlord.

5. Rewards

One of the best ways of maintaining a decent relationship is through rewards. Small and thoughtful gifts on occasions of festivals or the like greatly helps the tenant in developing an emotional attachment with the tenancy. The property owner can also introduce a reward program for loyal tenants, as a part of commercial real estate management in order to motivate the tenant.