Tenant retention is a huge aspect of property management. As tenant retention ultimately equates to revenue and asset value retention, it basically tells you how satisfied your customer is with your product. If your tenant isn’t satisfied, then it is unlikely that your property will be occupied. The physical condition of your property is crucial. To remain competitive, the physical condition of the rented space should be continuously monitored, well maintained, and suited to your client.
In addition, your property is constantly competing with properties around it; so it is important to assess the strengths/weaknesses of the properties that are attracting similar tenants to your own, so you can better compete with them.
The main factor in having good tenant retention is communication between the tenant and the owner. One way to have this communication is by giving out tenant satisfaction surveys. Their responses will let the manager know what/if they need to change anything. In addition, in the case that your tenant wants to leave the space, one should conduct an “exit interview” to understand why your tenant is leaving the building, which will let you know if you need to change any of your own practices/ anything to the building itself.
Of coarse, one way of having a strong relationship between tenant and owner is to provide certain services and amenities. Tritec does this in many ways. For example, every year Tritec provides its tenants with “Free Ice Cream Day”, where they have an ice cream truck come to each of its buildings and give employees a free ice cream of their choice. This day doesn’t just satisfy everyone’s taste buds, yet also lets the tenants know that they are still valued and are being taken care of.