Don’t Leave Money on the Table: How to GET RENT INCREASES when renewing Commercial Leases

Hey, everybody, Joseph Gozlan with Eureka Business Group, and today I wanted to chat with you about the number one way we use in order to get more rent from our commercial tenants in retail, for example. For our clients when we do the property management for them. So the real idea about it is not to Try to trick the tenant to pay more rent to squeeze the tenant to force the tenant The idea is the opposite.

The idea is to give more value So they can see why they’re paying more we can always go back and say look if you leave this thing It’s going to cost you a lot of money. The market rate is already this You You’re not going to find anything cheaper than that, but we don’t want to do that. We want to make sure that they feel valued, that they feel the location is great for their business.

They feel that we, as a property management company, care about them and care about their business and that their ownership is investing in what the building is looking at and the success of their business. Because at the end of the day, that’s what we all want. That’s what we as a commercial property management want is we want the tenants, the businesses to be successful.

If the tenant have a successful business, then they don’t have a challenge paying rent. They don’t have a problem with rent increases. They don’t have. Challenges, they’re successful and that’s what really what we want to do. So. Have that mindset, try to find more ways to bring more values. So the price of the lease makes sense.

And it’s a no brainer for them to say, yes, I’m willing to increase my rent on my renewal. So I can get all that value. One little thing, for example, that we do for our tenants is we create a website for them. So we don’t create a website for Joe’s Bakery, but we create a website for Epsilon Plaza. Et cetera.

And within the shopping center website, each one of those businesses have their own page on the shopping center website that includes their names, their logos, their operating hours, their contact information, if they want to put a phone number, an email address, and so on. We encourage them to send us pictures and videos if they want us to load them on their shopping center website.

And we also encourage them to send us if they have any monthly promotions or coupons. We will do that and we’ll do that free of charge. We’ve even went a little bit further and like once a month, we’ll pick a business from the shopping centers that we manage. And we’ll create like a mini commercial for them.

And we’ll put a link below in the comments to show you an example of a couple of those. Commercials, many commercials that we created, which is just a little music, a little pictures, a little videos and showcasing their business and their product. And they find it. Immensely helpful. They find it very great.

They’re very appreciative because a lot of the business owners They call somebody and say hey, I want a website They tell them it’s going to cost you three thousand dollars five thousand dollars and and humongous amounts. They’re not technological They don’t know that they can go on wix on wordpress and set something up in in with not a lot of effort But they’re just not going to do that because they got a lot of things to do running their business So just that little thing that we do Creates a huge value for them and they appreciate, of course, we do a lot of other things for our tenants in the shopping centers and our tenants in the industrial as well.

We find ways to bring value when it’s time to talk about renewals and the market rates that are. present at the time of the renewal, they feel that it makes sense to let us have that increase because we provide more value than they can get anywhere else. That’s it. Hope that was helpful for you guys.

For more tips and ideas of how to manage commercial properties or buy commercial properties, subscribe to our channels. We’re on YouTube. We’re on every social media channel. And if you have any questions, put them down in the comments. Thank you, everybody.