Community Forum

Does anyone have any effective ideas that can impact retention rates?

In the Houston, TX Market our Property Management Dept. increases our personal site visits to our Retail Portfolios 18 months out to make sure the Tenant is very well taken care of leading up to the renewal discussions our Leasing Department has with the Tenant. This reduces the opportunity for the Tenant to use "ignored/unanswered" issues they may have against our company for lower rent or the option to leave for another property.

Thanks,
Jeff

I think that the best method of tenant retention is the relationship that you build with the tenant. When you have their trust and loyalty, they will share the important information about how their business is doing and may just share with you the idea that they may be looking to re-locate. Early contact regarding renewal discussions is imperative. At least 18 months out.

Retention of commercial or residential tenants is best done by direct communication on a regular basis to build relationships. I offer courtesy inspections as well as regular ones. Surveys also help me figure out where I can improve.

In addition, social events, gifts and community newsletters are essential in getting the tenants to feel significant and appreciated and part of a community. These can be small budget items with little effort but big impact.

I agree that personal contact with the tenant is the best way to obtain retention. In these tough economic times, personal contact might not be enough. In the residential market, some tenants, ones that you would consider quality tenants, are being layed off work. On the commercial side, various retailers, also long-term tenants, are not generating income as they once had. What are some creative suggestions, besides some short-term rent adjustments, on retention under these circumstances?

For commercial retention, I would suggest offering free seminars to tenants on re-branding their stores (particularly mom& pops)/increasing their brand awareness/cutting waste/green incentive programs. Provide newsletters to offer a greater sense of community and then use these newsletter to keep tenants abreast of top ten trends/ things people continue to need in the current economy/announcements relating to renewals. This can also dispel harmful rumors and celebrate good news. It can also be used as a promotional vehicle between the tenants. Utilize vacant spaces to allow free exposure to existing tenants. Help the tenants to cross promote. Become a real partner and let the tenant feel that you are there for them. Have regular meetings. Keep in tune with who your tenants’ current traffic is. It may be different than you though. Worse yet, you may learn they have no idea. Develop programs to bring their traffic to them when they need it most. Allow tenants to utilize your electronic media to push their own coupons, incentives and events. Bulk purchase advertising and co-op with tenants. Utilize Chamber of Commerce After Hours events, sponsored by you, to promote your long-term tenants new products/services and introduce new tenants. Random acts of kindness for short money (an ice cream on a hot day, coffee on a cold day) are also small ways to stay in touch. Keep in mind all commercial tenants will need to start thinking about relocation at least eighteen months out. If you aren’t thought of as their partner by that point in the game, you may not hear from them at all until it is time to give notice or return keys. Be that partner and have your tenants come to you for advice, coaching and support, well before they ask for a reduction.