Just a Small Thing?

November 22, 2011

By: Brian Crepeau, VP of Management / Sales & Leasing

A commercial property management company’s greatest asset is their tenants.  Having a solid long term tenant base with high occupancy equates to positive cash flow and is what all investors strive for. 

To that end, how a tenant is treated by their commercial property management company during their tenancy will have a big impact on their decision to renew their lease, expand the size of their premises, or remain a tenant with a particular commercial property management company.  I have heard on many occasions from tenants relocating from another property that their prior commercial property management company only cared about what was in black and white in the lease agreement. 

An example would be a tenant whose lease is expiring within the year requests that the commercial property management company pay for an air conditioning repair that per the lease is the tenant’s responsibility.  The initial response could be to inform the tenant that the lease makes it clear that this is their responsibility and that they need to pay for the repair.  Another way to look at this request is that by taking care of the repair for the tenant it allows the commercial property management company to buy some good will with the tenant and may even provide the opportunity to discuss an early renewal of their lease.  What seemed like a “small thing” to stand by the terms of the lease turned out to be a lost opportunity to establish good will with a tenant and possibly retaining them long term. 

During these difficult economic times tenants are constantly being approached by commercial property brokers to relocate their operations and take advantage of all of the concessions being offered in the market.  Going the extra mile and doing a little more for your tenants can make the difference between keeping a good tenant in place or having them relocate to another property. Once a tenant moves out of a property it is never a “small thing” to replace them.