The commercial property market in the UK is a fiercely competitive one for landlords, with occupancy rates in the current climate remaining stubbornly high.
One example of this is the retail sector, with a recent report from the Local Data Company stating that vacancy levels on UK high streets currently averages out at 14.1 per cent. This marginal drop from the 14.2 per cent seen in February shows how the market remains a challenge for landlords.
Obtaining tenants to take up a contract in properties can be one challenge many are prepared for, but retention is another matter altogether. By treating leaseholders in a certain way, landlords greatly increase their chances of keeping them on board and getting them to sign an extension to their agreement.
Keeping on top of maintenance
Maintenance is key issue for commercial tenants, even more so than it is with residential customers. In retail, for example, they will have obligations to both their customers and their staff, and maintaining the property will play a key role in this.
If tenants have legitimate issues such as toilets breaking, electricity problems or broken locks, for example, it is important that landlords are on top of these and rectify them as soon as possible.
Keeping a bank of contractors on the books is a way to make sure there is always someone available to deal with any problems that arise in a timely manner.
And if tenants know their landlord will always make their maintenance a priority, it will give them peace of mind that their business' best interests are protected, increasing the chances of them staying on board when the time comes to renew their contract.
Being flexible and aware of market conditions
With vacancy rates remaining consistent at the moment, and businesses still largely unwilling to speculate in the current market, it's vital landlords are as competitive as possible.
This applies not only when they are trying to obtain a tenant, but also when getting them to renew their lease. If a business can find a cheaper rental price for a similar unit elsewhere, it's unlikely they'll hang around long.
Landlords therefore need to be aware of current market trends. The rates they set out at the start of a contract may have very well been competitive at the time, but if there has been a general slowing down in the sector, competitors may be offering better prices to tenants.
Although it's not ideal for landlords to drop their prices, it's always preferable to have a tenant than an empty unit or office, and retaining custom, even if it means a slight fall in income, should always be the top priority.
Being personable and approachable
For any landlord, be they in the commercial or residential market, this is one of the most important issues to address.
Tenants like to know who they are dealing with, and like to be able to reach their landlord if they need to do so. Being available, such as providing a mobile phone number, can reassure them that they are able to get in touch with someone as and when they need them.
Little touches can also be important. Paying the occasional visit to the property, simply to check out how everything is going and to speak with the leaseholder will show them that the landlord cares.
Being personable, approachable and always available is a great combination for making sure that tenants in any sector remain happy, and a customer who is happy with their agreement will be far more likely to stay on board for the long run.
Offering incentives
Again, little things can make all the difference when it comes to retention of tenants. Although competitive rent prices and stringent maintenance are the most important factors to consider, it never hurts to add a personal touch that will help a landlord stand out from the crowd.
This can be anything that lets the tenant know you are doing them a favour.
Examples will include things such as providing them with a supply of toilet tissue for the staff toilets, providing a free weekly fruit box or coffee for the staff room or even having a Christmas raffle for a festive hamper.
These might not come across as obvious tactics, but employing this sort of embellishment to a tenancy can help a landlord stand out and keep tenants content, giving them a reason to sign a new lease when theirs comes to an end.