When you own retail property it is essential that you have the least space that is vacant and untenanted. Vacancy management is one of the key areas that retail property management companies have to concentrate on so that their landlord customer gets the best returns on investment.
Property managers need to have a strategy in place that optimizes tenancy levels and reduces vacancies.Long-term leases can help, but you must ensure that these leases do not expire at a time when other premises in the same location belonging to other landlords are also vacant. This requires advance planning that decides the term of the lease so that it terminates at the right time when you can offer your own vacant premises for renewal. Lease options must be negotiated with the existing tenants well in advance, as this can also enable you to get advance notice of any tenant’s desire to vacate the premises in any case. The property manager then has sufficient time to look for other tenants to fill the vacancy and ensure a high level of tenancy.
Retail property management companies must at all times maintain a close liaison with all tenants, as this gives them information about those who want to relocate or expand their business. Business plans for any property must be long term and be for at least two years, and this plan must examine all lease expires during this period, which can help in knowing future vacancies and the need to make the necessary marketing effort to continue to maintain high tenancy rates. Returns on investment are often linked to a minimum percentage of units that need to be always tenanted and it is up to the property managers to see that tenancies are always well above this minimum.
Vacant tenancies must always be kept presentable and in the best of the condition. This time is best used to complete any repairs or maintenance that the vacant unit may require. Property managers also need to ensure that existing tenants are performing under the lease conditions and any default must be severely viewed and corrected. Maintenance of the property and its surroundings can also play a large part in getting tenants and must never be neglected.
Property managers also need to maintain a list of potential clients and ensure that existing tenants are kept happy. Being in touch with the local business community can help in this regard. The property also needs to have a renovation and modernizing plan that can help to attract future tenants. Attention to all these matters can help to build a strong income for the property.
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