When you work with investment property clients from a leasing or property management perspective, it pays for you to set defined goals that match the client’s targets. Unfortunately some agents have little or no idea what the client is targeting for their investment over time; that then leads to slower negotiations and leasing problems.
When an agent is aligned to the landlords focus and investment targets, the whole leasing and property management issue gets a lot easier. That then leads to a happy client and potentially increasing fees for brokerage service. A good outcome don’t you think?
Landlords are Very Special Clients
So what can you do in working with these special clients? Here are some ways to get closer to a landlord and their focus issues for property performance:
- Set investment targets at the start of the year – The investment targets for a property will normally take into account market rents, rent reviews, options, and the supply and demand for lettable space, vacancy factors, and the existing tenant mix. Investment goals are then built around the realities of the property and the location.
- Review asset performance – The performance of the property from a base of income, expenditure, occupancy, and risk will always be valuable in the planning process. Set your budgets based on the reality of the property.
- Track tenant changes and the tenant mix – Critical dates will exist in a property with regards to tenant leases, and occupancy decisions. Understand those leases and all the issues that evolve from them.
- Look at income opportunities – The rental income for a property can be improved by adding extra lettable space, or improving the quality of the property. Short term rentals can also be established as third income streams (the concept is very common in shopping center leasing).
- Review capital works and expenditure – Each year the expenditure of the property can be checked and reviewed for the upcoming year; that’s where the budgeting process is valuable. That full assessment will involve works estimates, tendering of contract services, and property valuations.
- Updates on incentives – Like it or not, lease incentives are part of attracting new tenants to a property or perhaps retaining current tenants. The landlord should consider the impact of incentives on upcoming lease negotiations. Decisions can then be made early.
- Lease rent review and options – Protect your leases, the tenants in the tenant mix, and your levels of market rent. The critical dates evolving from rent reviews and options are all part of the process. Understand all your leases in a comprehensive way and explain to the landlord the upcoming changes and decisions that should be made.
All of these facts allow you to make specific recommendations to your landlord clients as part of a leasing and or property management service. Information supported by market evidence and documentary facts will help make your services and relationships with your clients much more positive.