When you are working as a property or leasing manager on commercial investment property, it is wise to implement a tenant retention program for the property itself but also for the landlord in the greater portfolio they may own.

A tenant retention plan will help the overall income strategy for the subject property and minimise vacancy downtime. In this property market and economy a retention plan within the tenant mix will help the income and expenditure budget for the property. It's simply a great idea and tool for the property manager to use.

Special Service

So the tenant retention plan can become a specialised service for the real estate agent that specialises in commercial and retail investment property. It can be called a number of things, all of which help the marketing of the concept to the property owners the agent represents.

The key benefits of a tenant retention plan or program are:

• Income stability through planned lease options, rent reviews, new leases and tenant placement
• Allocation of leased space to the tenants that most need it
• Maximised rental given local market rental trends in comparable properties
• Directed lease strategies to sitting tenants that retain their occupancy
• Expenditure recovery from a more stable and predictable occupancy and outgoings base
• Lease terms and conditions that help the landlord match their investment holding plans
• Renovation and relocation programs that can be integrated into the retention plan

The tenants in a property will usually cooperate with a retention program for the simple reason that they appreciate the focus of the landlord and property manager on their needs as a business.

To get the retention program up and running a simple staged approach is best. Here are some ideas:

1. Set up a questionnaire for the tenants to complete and talk to you about each month or quarter; meeting frequency is depending on the activity in the property and the surrounding area.
2. Expect that other agents will be chasing your tenants to change property lease. The retention program helps keep this pressure under control.
3. Review all leases in the property so you know the critical dates that will impact the retention plan. They are usually rent reviews, lease options, lease expiry, and renewals.
4. Check out the supply and demand for leased space in the local area as it will have impact on the choices you make with your property.
5. Changes to the community and businesses surrounding the property should be monitored on a monthly basis at the local planning office.
6. Negotiate early with any desirable sitting tenant. This prevents them getting rental offers and proposals from other nearby properties.

A tenant retention plan is a good property management or leasing tool. The property owner will see solid advantages in implementing the plan into their tenant mix and investment plans.