For property investors, the objective of owning Boston Metro commercial real estate is to enjoy a positive cash flow. Accomplishing this involves attracting and retaining good commercial tenants! The Boston Business Journal recently touched upon this subject, and we’re going to expand on it with some advice of our own. Here are 7 keys to retaining commercial tenants:
1. Good communication. Your commercial lease is the beginning of your landlord-tenant relationship; not the end. For example, items like common area maintenance expenses and operating expenses should be identified in your lease; you should also provide advance notice when these expenses are increasing. Same goes for planned repair projects, periodic property condition inspections, and so on. Minimize business disruption to your tenant whenever possible.
2. Proactive maintenance. Heating, plumbing, electrical and air conditioning systems should be inspected annually, and upgraded as needed. Structural elements should also be examined periodically.
3. Adequate insurance. Be sure to carry enough liability and casualty insurance. Also verify the limitations of your coverage and carry additional policy riders when needed. Think about the roof collapses from heavy snow that happened around Boston last winter; you need to be prepared for the unexpected.
4. Security and safety features. Good exterior lighting, alarm systems, plus security doors and windows can be beneficial to your tenants.
5. Pest control. Termites, ants and rodents are unwelcome tenants, and could cause damage to your property. Conduct annual pest inspections.
6. Trustworthy contractors. If repairs are being performed by third parties, follow up on the progress of the repairs and the quality of the work. Ensure that repairs are performed to the satisfaction of yourself and your tenants. Also follow up on the performance of snow removal contractors, window cleaners or other services that you provide.
7. Curb appeal. Appearances count! To attract quality commercial tenants – who wish to attract customers – your property should look its best. However, keep prevailing rental rates in mind for your immediate market area, and do not over-spend when making aesthetic updates.
When you are ready to buy or lease Boston Metro commercial real estate, use the expertise of an experienced commercial real estate broker who can help you find the ideal property. Please contact us today for expert guidance!