The Most Common Tenant Experience Pitfalls
COVID-19 forced many businesses to stop operating during periods of national lockdown. Many commercial lease agreements were scrutinised to decipher who should bear what portion of the accompanying losses.
This taught many about the importance of lease agreements and managing tenant expectations.
Luckily, most tenant experience pitfalls are easier to predict and avoid than a global pandemic. Below, we discuss some of these pitfalls, and how you can use strong channels of communication to avoid them.
Tenant Experience and Expectations: What to be Aware of
Commercial tenants typically expect more from a lease than simply receiving a property to use for a set amount of time.
They may expect that certain use of the premises will be allowed or expect the operating costs to be within a specific range with certain things being covered. Further, they may expect to be given the option to renew the lease after the term is completed.
Bear expectations such as these in mind when negotiating and maintaining a working relationship with a commercial tenant.
Most Common Pitfalls for Commercial Real Estate Tenants
Many of the common problems experienced by commercial tenants occur when the lessor does not consider the tenant’s expectations or include them in the lease agreement.
The tenant may discover that their lease contains a clause requiring them to pay the full cost of repairs to the property.
Alternatively, a disgruntled tenant may discover that their lease contains a relocation clause, which allows the landlord to move the tenant to different premises within the complex or property.
Tenants may also discover that there is no renewal option for the lease and that they may have to relocate after investing in the commercial property. They may also discover that they have underestimated the operating costs.
Why are Proper Communication Channels Important?
Proper communication channels ensure that successful, transparent communication takes place.
If it is difficult for a tenant to get hold of you, they may avoid explaining what expectations they have regarding the premises. Without knowing what their expectations are, it is difficult to meet them.
Tenants without a proper channel of communication with you may also refrain from voicing any complaints they may have. This makes it difficult for you to fix any problems or learn from constructive criticism.
Instead of voicing their concerns to you, tenants may complain to other prospective clients, harming your reputation.
How to Prevent Pitfalls in Tenant Experience
To prevent any pitfalls in tenant experience, it is imperative that you set up strong channels of communication between you and the tenant.
Keep in touch with your tenants! Involve service providers for tenant announcements. Newsletters and announcements also go a long way.
Further, make sure you implement mobile communication. Tenants prefer this to email or phone communication.
Most common commercial tenant experience pitfalls can be avoided through good communication between you and the tenant. Set up strong channels of communication to help you avoid these pitfalls. this will enable you to retain your tenants and improve your reputation in the process.
If your organisation is looking for a tool to involve all tenants in property management for better decision-making on workplace and property strategies, have a look at Falcony | Observe.
We are building the world's first operational involvement platform. Our mission is to make the process of finding, sharing, fixing and learning from issues and observations as easy as thinking about them and as rewarding as being remembered for them.
By doing this, we are making work more meaningful for all parties involved.
More information at falcony.io.
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