As an office landlord, you must exhibit flexibility, modernization, and creativity when determining the price of leases and rental properties, or you will risk alienating tenants. Incentives need to be developed, keeping current lessees satisfied with their renewed agreements and attracting newcomers to join as well.
Many entrepreneurs sign off on a short-term lease initially, uncertain if their business will work out, which is a legitimate concern. If the company starts to gain wild profits, its second lease will need to accommodate their newfound success, as location, size, and quality become paramount.
As they say, ‘the devil is in the details’, and this is one example of the landlord having to think on his or her feet to hold on to their tenant. Hooman Nissani, a real estate developer and entrepreneur whose services extend throughout the Greater Los Angeles area, has provided a few ways for landlords to stay one step ahead in their negotiations.
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Compare Similar Properties In The Area
When setting a price on leased property, Hooman Nissani is insistent that you dodge the temptation of overplaying your hand by jacking up the costs. See what your local competitors are offering their tenants for similarly modeled spaces and draw comparisons, then leverage that information to give business owners a little extra motive.
In Columbus, Ohio, leasing options are found left and right, as tenants have plenty of listings at their disposal, which makes it an even tougher sell for the brokers. As such, landlords permit their brokers to offer tenants with strong credit one month of free base rent per each year outlined in the lease term.
Also, whenever possible, the landlords supply exterior signage for these businesses, handing their advertising department a shot in the arm by allowing their brand to be noticeable from clustered highways. Another tactic used by the more successful landlords is early lease termination choices and shorter terms, understanding the economy’s fickleness.
Consider Advantages & Disadvantages Of Property
Tenants are wise and astute, picking apart every detail of the property that they are inspecting. Hooman Nissani believes that landlords should weigh the pros and cons of a leased space equally when finalizing the terms. While some factors may undoubtedly turn off the potential renter, the landlords can weave their own bit of magic that will help overshadow the less appealing details.
Native realtors in Corpus Christi, Texas, are separating themselves from the herd by providing concessions, such as free rent extending from three to six months and on-the-house parking for those who are reaching the conclusion of their leases, hoping to secure them for an additional three to five years. Realtors who are savvy and willing to think outside the box in such a fashion are capable of carving out their own unique advantages for a rental property, grabbing the attention of the clients.
Value-Added Services Should Be Showcased
One rule that a landlord should obey is their determination to present services that, over time, will be valuable in the tenant’s eyes, perhaps even sparing them certain costs. Cedar Rapids, Iowa, has seen its landlords hang on to tenants by offering superior service, maintaining rental rates at their current set-up when renewals are discussed, assisting with taxes and maintenance charge upsurges in common areas, arranging space reductions and improving the overall space for quality tenants.
For new tenants who are in the market for a coveted space, landlords are even contributing paid improvements, secured options attached to short-term leases, and some free rent to get them started.
In a flooded market, the landlords have no alternative but to play ball and promote value-added services; otherwise, they will only let tenants be scooped up by competition that adapted adequately.
Act Swiftly
With competitors continually vying for a tenant’s commitment, Hooman Nissani recommends that landlords abruptly negotiate with their existing tenants in order to keep them smiling. Rent discounts are applied in many instances if the lessee is prepared to agree upon a longer-term contract.
Some tenants, due to economic uncertainties, might not be ready to proceed further in talks straightaway, as questions of office space, and whether or not an upgrade is warranted in the future, surmount.
Early inroads show the tenant that he or she is a treasured customer, and it gives them plenty of time to research their own before giving a definitive answer on a lease extension. Rather than surprising your tenant with a last-minute, desperate pitch in the eleventh hour, your timely planning will provide them with an opportunity to make an informed, composed decision.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
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