Proven Strategies for Reporting to Landlords in Commercial Property Leasing
When you manage or lease a commercial property, you should regularly report to the landlord (your client) to inform them about the local property market and the results of recent marketing efforts and inspections.
A client landlord fully briefed about the local property market is more likely to negotiate realistically when a tenant is found for the property. Regular reports to a landlord will help you move a lease deal forward and lease the premises faster. Good communication builds trust with the client, a process that is keenly needed in today’s property market.
Tenants are Selective
It is a fact that most tenants today are very selective in making a lease deal and slow to negotiate. The tenants we work with understand the property market and the trends of rents and vacancies.
So, how can you report to the landlord for the best results? Ultimately, you want the client to be cooperative and realistic about asking for rent and lease terms. Most landlords will know little about these things without a comprehensive marketing report and update of competing properties.
Reporting System for Leasing Premises
Here are some proven reporting strategies for your clients in leasing premises.
1: Prepare a Feedback Report
After every property inspection, prepare a comment sheet summarizing the outcome with the prospective tenants. Use the tenant’s comments in the report so the ‘third party’ perspective helps your situation with the client. So every inspection completed should have a landlord report summary created and sent. At the end of the week, a full market update and strategy for the following week should be created and sent. If you give the landlord the updates regularly, it helps when it comes to rental changes, and marketing shifts.
2: Changing Market Conditions
Review the competing properties in the local area on a weekly basis and tell the client about those properties and what has been changing in their marketing campaigns. It is likely that you will have quite a few properties in the local area that are competing for tenants against your listing. Check them out and give the client a comprehensive understanding of those listings and how they track enquiries.
3: Local SWOT analysis
Do a SWOT analysis of quality properties in the area. Include factors that relate to improvements, services, amenities, car parking, vacancy profile, and tenant mix. Do some regular property market rent assessments locally that can be relevant to differing locations and property types. Accurate information will help you with listings and sales pitches with landlords and tenants.
4: Incentives and Numbers
Give the client updates on lease incentives in the local area for differing property types and locations. Tell the client what happened with the tenant enquiries for differing properties today. Tenant enquiries will vary from property to property and season to season. Tracking the numbers as part of your local market updates is interesting.
5: Time on Market Today
Check out the time on the market for quality properties versus older and more average properties. Get details of rents in both cases. Also, compare the listing types of exclusive versus open listings. You will soon see differences in listing types and negotiated leases.
Leasing Premises – A Conclusion
These things will help you with your clients as they seek to list and lease their commercial property. Today, we need realism when listing and marketing quality properties. Use information from the location and the market to create more real estate lease transactions. Information from the local area is a tool to use and optimise with your clients and customers.
It does not matter what the starting rent is on a lease, but it does matter where the lease is heading in terms of market rents growth over the lease term. A good lease builds value in a property for the landlord.
