In this article 6 topics
In one word: invest! The more you invest in a property, the higher its quality will naturally be. It will attract (quality) tenants, rents will rise with demand, and everyone will be happy. How do you do it in practice? What is the secret to investing? Here is a guide that will help you raise your property's occupancy rate and even its rent.
Hire a good management company
The quality of many properties rises and falls on the choice of office building management companies. Companies with experience in property management know how to operate and take the best measures to care for your property. All of this has a direct effect on how attractive your property is.
Among other things, a good management company will make sure the property is clean, well kept and smells good, and will also carry out preventive maintenance. For example, the management company will implement high-quality systems maintenance in the building, which prevents frequent faults and extends the life of the systems. It will handle breakdowns immediately and simply make sure your property performs at its best. This matters a great deal and brings real peace of mind in retail center maintenance as well.
Using a management company costs money, of course, so it is important to pay attention to how much you pay, and for what. The budget invested in managing and maintaining the project must be tailored to the project's size on the one hand, and fully fit the needs of the property and the client on the other. If the management fees are too high, finding tenants may be difficult. If they are too low, it will show in the management company's ability to care for the property, and naturally lower-quality tenants will come, at lower rent.
Lowering management fees
How do you lower ongoing management fees? You make the building's various systems more efficient, and here too, you make sure you have a reliable management company that specializes in managing office towers and retail centers: one that is high quality, experienced and works with you with maximum transparency. How do you do it in practice? You can install an energy meter for each unit so that it is separate from the common-area bill, check whether and how electricity costs can be reduced (in our experience, there are almost always systems that waste a lot of electricity for no reason and could easily be made more efficient), and carry out periodic preventive maintenance.
Invest in advertising
Even the best-kept building with the best tenants can get lost among the many buildings in the same area or neighborhood. If you don't tell the world you exist, it simply won't know! Promoting yourself is not a bad thing at all, especially in the competitive real estate market. How do you do it right? There are several good ways to invest in advertising (that will actually work, prove itself and even pay for itself):
- Real estate brokers: The good old way is still considered the most effective. Don't be afraid to approach brokers to find new tenants. When a broker is good at what they do, they can find you excellent tenants with exactly the profile you are looking for, at exactly the price you want. So even if you give up two months' rent to pay the broker's commission, it will be worth it and will immediately raise your occupancy rate.
- Online platforms: Facebook groups, sale and rental listings on dedicated websites (such as Yad2), or any other online channel you know are still among the best ways to expose your property to new potential tenants. Give as many details about the property as possible and spell out its strengths. You want to raise your occupancy rate, and this is the way to do it.
- Signs: Signs in attractive locations are an excellent way to put your property in front of potential tenants, but it is important to do it right. Be as focused as possible, present the important details clearly and eye-catchingly along with your contact details, and hang the signs in locations relevant to the property: around it, or in areas where you know there will be quality tenants who suit the property. After all, we don't only want to raise the occupancy rate; we want to do it with quality.
- A management company: A management company for office and residential buildings is responsible for more than the day-to-day management of the property. Some management companies also hold a real estate brokerage license. This is an excellent way to find new tenants, because someone who works in the field from the inside and knows what it takes to increase a property's value or preserve it can help you do so.
Increasing the property's value
The classic, safest and most logical way to raise occupancy and, later, the rent is to stick to actions that make the building better. In other words, to increase its value. Increasing a property's value takes investment and a lot of attention, no doubt, but it pays off. How do you do it in practice? There are many ways, such as keeping up with preventive care and top-quality maintenance, allocating a dedicated budget for improving the property (so if specific upgrades are needed, you don't have to find a new budget for them), making the project accessible to people with disabilities, enforcing the house rules and investing in events that build community.
The right tenant mix
Building a quality tenant mix is nothing short of an art. It is important to understand which tenants in the project's area will be relevant and suit the profile you want to create in the building. For example, if you need to lease space to a commercial branch with heavy foot traffic (a clinic, a gym, a government office and so on), you will usually not want to do so in an area that is not economically developed, or next to small businesses.
Social media
Even the "dullest" business must be on social media and have an online presence. When it comes to retail centers, if you are not there, you barely exist. What's more, actively managing a Facebook page will bring interested people to the building and increase revenue at the property, in its stores and in the various businesses that make it up. It simply works!
