7 Ways Your Property Manager Can Help With Your Lease Renewal Cycle

By Jonathan Vanstone-Walker
Thoughts
10th May 24

Remarketing space is a nightmare at the moment.

It’s so much easier to renew with your existing tenant than remarket.

  • No letting fees
  • Zero voids
  • You’re dealing with a known quantity

But so many landlords miss opportunities because their tenant is secretly out looking at the competition with an advisor. They see a shiny new building with a huge rent free period, and before you know it, your floor is empty and you’re looking for a new tenant and incurring costs.

The great news is that there’s a secret weapon in the fight for tenant retention: A great Property Manager. Here’s how the best PM’s keep income flowing and tenants delighted:

#1 They gather intelligence

Your property manager should be like a friendly spy.

They should know when there is a break option or lease expiry approaching and observe the situation on the ground:

  • Is the tenant unhappy with something that seems critical?
  • Have they just invested thousands in new AV?
  • Are they being cagy and difficult?
  • Have they been spotted with an agent?

Great PMs pick up on these things and feedback to you in a composed and insightful manner.

#2 They’re present

Point #1 can’t happen unless your PM visits their buildings and meets their customers. These days, most PMs delegate this role to their FMs, which is fine for maintenance and building issues.

However, nuanced conversations around renewals should be conducted by an experienced PM. More importantly, customers will feel like the PM cares about them, and wants to make their lives easier.

Seeing tenants at least every quarter is a good benchmark.

#3 They have an Asset Plan

Nothing turns customers off more than an unloved building with long-term issues.

The antidote to this is an Asset Plan – a document that clearly sets out what your goals are for the year ahead, and how you’ll achieve them. Everything should be measurable, so customers know life at the building will always improve.

Sharing your plan gives customers faith that they won’t be let down if they commit to a long-term partnership with you.

If your PM doesn’t have an asset plan, it’s time to make one.

#4 They know when NOT to negotiate

Some PM’s will have a go at negotiating.

But the best ones know when not to.

While they might have great tenant intel, their market knowledge might not rival that of a good Agent or Surveyor. A great PM knows when to step back and act as sidekick.

#5 They help with the stacking plan

Lots of occupiers are still ‘rightsizing’ after Covid, so to keep a customer you might have to relocate them within the building.

A great PM will help you in this Tetris-like scenario. They might help convince another tenant to move or upsize into more space. They have ideas and are results-oriented.

#6 They create a community

Having occasional fun events is a good way to meet your customers in a less formal setting.

It’s not easy to have meaningful conversations in the open plan during a site visit. But after work events, when the beer is flowing and the pizza is popping, provide the backdrop for more candid and honest conversations.

PMs are people too, and showing customers that human side helps form connections and loyalty. As an added bonus, customers get to enjoy unique experiences that competing buildings can’t offer. So why on earth would they not renew??

#7 They ‘get’ hospitality

The hotelisation of the office isn’t a fad, it’s the new normal in a world where:

  • Tenants are customers
  • Employees are guests
  • The ‘office’ is a company clubhouse
  • People won’t commute

But there’s more:

  • Automation and WFH mean people feel more disconnected than ever
  • Business leaders desperately need help with their culture
  • In-person attention is the ultimate luxury

People want to be seen and heard. They want to know that the people looking after their buildings are real, not gibberish-spouting AI chatbots.

Giving unforgettable customer service is the ultimate way to promote loyalty. A great PM will already know this and have a programme of hospitality training in place for building staff and anyone else in a customer-facing role.

This is why we’re doubling-down on hospitality and presence at TSP – and also why our Property Managers make a real difference at lease renewal time.

 

Need a great property manager to help with your renewal cycle? Contact us for a bespoke proposal.

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