Today, every landlord must take steps to prepare a property for leasing and to market vacancies when they occur. Prepare to lease space in all your investment properties. Know that vacancies will occur, so prepare for that.
The property leasing process moves faster and produces better results when it is started early. You will sometimes not know when your next vacancy will occur.
Where Do Landlords Start?
Where can a landlord begin leasing a vacancy right now? There are tenant strategies, leasing terms and conditions, marketing strategies to implement, incentives to offer, and rentals to achieve.
The property market constantly changes, and the landlord-tenant activity balance shifts a few times a year. This will have an impact on how marketing should take place. Take into account local rentals, vacancy factors, and recent property inquiries.
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Creating a Leasing Marketing Plan
Where do you even begin with the leasing process? Examine the characteristics of comparable properties available for lease in your area today. Consider the supply and demand factors that may impact your vacancy marketing.
Given the ‘lease deals’ on offer from property developers, new projects and properties will shift supply and demand. Be aware of local property changes affecting supply, demand, and rental rates.
Prepare for Vacancies
Preparation is the key to achieving an early result in any leasing situation. Here are seven strategies to consider when leasing any vacant properties in your portfolio. Here are some carefully selected methods to consider when leasing your next vacancy.
- Rental targets: Consider the rental rates you would like to obtain from leasing the vacancy today. These rental rates should consider comparable properties, local supply and demand for space, and your area’s economic pressures or business cycles. Rentals do not always rise, but market conditions influence them. Before you begin marketing the vacancy, research the local property market conditions.
- Rental types: Rentals depend on the property type and location. Some rentals will be gross, whereas others will be net. The cost of property outgoings and who pays them will be the difference.
- Incentives today: Some incentive factors will also be considered. Most new tenants will request a lease incentive. Most landlords take the ‘standard’ approach with incentives such as a rent-free period. Various incentives are available, such as cash, fitout, and reduced rent.
- Premises preparation: Ascertain that the premises are clean and ready for occupancy. Remove any visual impediments or presentation issues. Consider how a prospective tenant will enter and navigate a property. Every property inspection, especially those involving complex properties, should include an inspection plan. That methodical approach can best showcase the property.
- Standard lease planning: Prepare a ‘standard lease’ for the vacancy. That lease should be tailored to your landlord’s investment and occupancy goals. Consider the different types of rentals, rent reviews, incentives, options, and outgoings, and include reasonable provisions in the standard lease.
- Target tenant types: Begin your leasing campaign by creating a list of target tenant groups. This makes marketing much more straightforward. You can also do local area marketing to reach your target tenant groups. When it comes to leasing, most businesses today prefer to stay local. They are familiar with the area, their customers are nearby, and relocating is not a significant event for the company.
- The Best Agent: Select an agent who specialises in leasing and has leasing experience. While it may appear logical, an experienced leasing agent is always the best option. They will reduce the time a vacancy is on the market because they know when businesses relocate locally. When a vacancy appears on the market, they have a database of people to contact.
Solve Vacancies Early
So, these strategies will help any landlord or investor solve vacancy issues sooner. Incorporate these issues into your approach to solving vacancies in your properties and portfolios of investments.