‘See-saw’ – The art of keeping tenants

‘To keep tenants is the key consideration of the almost sure survival. Many have said, many have known, but for those who want to implement these, the understanding of the rank of tenants’ needs is an essential ingredient, and have to be handled with care.’- says Zoltan Petrik, Head of Property Management at Eston International.

Those who want to keep their tenants in have to be prepared to put the resounding phrases into practice nowadays. The task is not easy as due to continuous rationalizing or rather worse downsizing, many decide to shrink their leased space or simply vacate it. This could also happen by taking legal consequences for stepping out from definite term agreements.

Landlords who act with understanding have to allow for all these possibilities, but in many cases it may not be sufficient. The role of Property Management (PM) companies being in charge for properties became crucial in this process. The sector was responsive to it and become the pulling force of the current real estate market.

According to Zoltan Petrik, one of the key factors of the PM services is the elimination of bad habits: ‘You need to think together with tenants, approach them proactively and put an end to the ‘I am the owner, while you are just a tenant’ thoughts. Those, who are able to rationalize all the cost elements of the lease structure either on the service or on the maintenance side, have far more chance in the negotiation process, as in a particular case they have such reserves/surplus which could be used to compensate the decrease in rents.’

It also needs to be seen clearly apart from these that the quality of service from the book reading habits of the receptionist, through handling minor parking problems up to adequate cooling in the offices was never as ‘valuable’ as nowadays. If a tenant is not quite pleased with the day-to-day services, then a reduction in rents will be insufficient to keep it. Comfort, as an idea is not included in the annual rental conditions of tenants, although at a given case it could be really important at a meeting of the board directors where decisions are made about moving.

Quantifiable cost rationalization, increase in time spent on tenants and perfect services. These could be solutions for keeping lease agreements alive besides the openness and flexibility of the Landlord. In an ideal case a good Property Management Company should know these well. Representing Landlords’ interests, but in such way which is interpretable for tenants as well, speaking their language, and showing measurable advantages. You have to give in to tenants’ demands as the worth of a continuous income stream has multiplied nowadays, although it should not be overlooked either that a good Landlord together with a well-prepared Property Management Company makes an unbeatable couple. A good Property Manager is able to assure real fundamental to this.