Real Estate Investor Magazine South Africa Dec/Jan 2016/17 | Page 30

PROPRERTY MANAGMENT

How to keep your vacancies low by

Valuing your Tenant
BY CATHERINE BRISTOW

M

uted demand for office rentals has resulted
in higher vacancies across Johannesburg,
making it all the more critical for you to
hold onto your good tenants.
Office market rentals have seen only a marginal
increase over the years in line with muted demand, as
a result commercial property owners are experiencing
higher vacancy rates. In light of this climate, you can
ill afford to lose good tenants.
Here are three ways you can ensure that your tenants
continue to renew their lease with you.

1 Understand their needs
Gone are the days when received the signed lease
and handed over the keys. If you really want to
ensure that your good tenants stay you will have
understand their business needs.
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DEC/JAN 2017 SA Real Estate Investor

Determine what is happening in your tenant’s
business. What are their future growth plans?
If they are gearing up for rapid expansion will
they need more space in a few short years? Has
the business grown beyond their current parking
spaces, and if so are you able to accommodate
them?

2 Build a relationship with your tenant
A lease agreement is a long term relationship and
it is important to establish a solid relationship
with your tenant. A sound relationship also allows
your tenant to have more open conversations with
you.
It’s better for your tenant to discuss, say, the
possibility of tight cash flow in the business,
which could impact on their ability to pay the next
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