Let’s take a minute to talk about tenants. We know that finding the right tenants is good for business. As a commercial landlord, you’re aware that locating those perfect-fit tenants is easier said than done. But, we hope you know it’s not impossible, especially if you know the right tips and tricks. 
Knowing how to attract those ideal tenants and what things to consider when choosing a tenant will help you lease your rental to the right match. Here’s how:
Evaluate your property.
The first step to attracting tenants is making sure your property is ready to be rented out.
First, check that your space is in great shape. Has it been thoroughly cleaned? Does everything meet health and safety codes? Are there things that need to be fixed before it goes on the market? What about potential upgrades.
Between tenants is a great time to make those required updates. It’s amazing what a few upgrades can do to improve the property’s marketability. Consider investing in great landscaping, giving the property a fresh coat of paint (whether that’s inside, outside or both), making energy-efficiency updates and improving the security of the building.
Know your space.
Before listing the property, consider what type of business might do best in your space. This vastly depends on how much space you have, the type and structure of the space and what’s nearby. You might want to ask yourself, would your space make a better office location, a strip mall, eatery or something else? Is the current layout appropriate for the type of businesses you hope to attract? You may consider dividing it up if you’re looking for more than one business to rent the property, for example.
Not sure what business might do well in the area? Take a look at what’s currently in your locale. For example, if you have a strip mall, consider what other businesses you’re renting to. Think about businesses that complement what’s presently there and what might compete. Also, consider what businesses do well in your town/city. You don’t necessarily want to open up a competing business across the street since that can be a more significant risk factor, but opening up a similar business a few blocks away may be a good idea if you have the demographics to support it. Considering demographics, consider what businesses may be popular with your town/city’s population.
Create attractive ads.
When you’ve had time to upgrade your property and consider what the rental may be best suited for, then you’ll know what types of businesses to market to. Then, you can come up with a rental price. Carefully consider what is appropriate for the location, size of the property and amenities offered. Then, compare with other properties in the area to help identify an accurate amount.
Next up, you’ll want to photograph your property. Take time to get some beautiful high-quality photos of the property. Make a list of all of the advantages your property has to offer. You can even mention what businesses may be ideal at this property to help steer the right potential tenants to reach out to you. Market your property in multiple places, make sure you have visible signage and online advertising to get seen by more people.
Ask questions.
Once a tenant expresses interest in renting your property, you need to consider if they’re the right fit. This is the time to ask some questions, listen to your intuition and do some research.
Ask the tenant about what business they want to put in the space. Does their business strategy have the potential for success? Is the business well-suited for the location? Remember to ensure it does not compete with other tenants you have. Find out if they have the income to make the rental payments every month.
Consider asking for previous tax records, a statement from their business bank account and/or a bank reference. The bank reference isn’t the only reference to consider, though. It’s also imperative that you ask for references, particularly from a previous landlord. But don’t just ask. Make sure to reach out to the references provided to find out more. Do some further research by running a credit check. This can help you see how responsible they’ve been at making payments and if they’re overwhelmed in debt. Another check to consider, only if state law allows it, is a background check.
Attracting and choosing the right tenants is a big job. And, it’s one that can directly impact the success of your commercial real estate investment. We know it’s a lot of work, which is why we’re happy to take it off your hands.
When you partner with PMI, we make sure your property is ready, we market it with proficiency and offer a thorough tenant screening. We do our best to keep our clients and their tenants satisfied. Learn more by visiting our website today at https://www.propertymanagementinc.com/
