One of the biggest expenses in commercial property investment is tenant turnover. As your commercial property becomes vacant you receive no cash flow, while incurring advertising, cleaning and property maintenance costs. To ensure your property doesn’t remain vacant for long, it is important you stay up to date with the market and keep your property desirable.
Here are some other ways to reduce vacancy rates in your commercial investment property:
To reduce vacancy rates, it is recommended to advertise widely and well in advance. Advertising widely will ensure a greater pool of prospective tenants, increasing your chances of a good tenant. Professional photos and listing your investment property through multiple real-estate websites will maximise exposure.
As soon as the current tenant gives notice, it is important to start the advertising process. It will allow you more time for advertising, screening and contractual agreements to be fulfilled. But, don’t advertise too early, ensure you can legally gain access to the property and a mutually convenient inspection time with the current tenant has been arranged.
Keep updated with current conditions in your local market, compare what similar commercial properties in the area are renting for. Knowing the prevailing rent prices will ensure you don’t overcharge and risk having your investment property remain vacant for long periods of time.
If you think the rental price for your commercial investment property is contributing to high vacancy rates, speak to your property manager.
Tenants are attracted to clean and neat properties. First impressions do matter. To reduce the vacancy rate of your investment property, make sure the property is well maintained, kept clean and regular maintenance is completed.
Tenant screening is crucial, it will inform you of an applicant’s criminal record, payment or eviction history, enabling you to assess whether the applicant meets the screening criteria and is suitable for your investment property.
Retaining a good tenant and ensuring your investment property remains occupied may be obtainable by forgoing a rent increase.