Letting is not everything

In property management, vacancy is tantamount to a direct reduction in income. Avoiding vacancies is therefore certainly one of the important goals of asset and portfolio management. After initial letting, subsequent tenant management offers good opportunities for constant income and cost optimisation. In the commercial segment, this aspect is of great importance due to the frequently significant tenancies. Quantitative factors such as the correct processing of payments, service charge settlements or rent adjustments are important. In the following, however, the equally relevant qualitative factors such as tenant communication or special services are analysed in more detail with a focus on the commercial segment.

What are the benefits of active tenant support?

For property owners and tenants alike, actively looking after the tenant base offers comprehensive benefits that help both sides to avoid inconvenience and costs. These include in particular:

Customer loyalty and satisfaction

Through regular interaction and support, tenants feel better looked after and supported. The resulting higher level of satisfaction can lead to long-term loyalty, which benefits both tenants and landlords

Early recognition of changing needs

Regular communication allows potential concerns to be recognised at an early stage. This makes it possible to respond quickly and resolve any conflicts before they escalate. Regular direct contact with tenants also makes it possible to obtain valuable information regarding the course of business and planned changes on the tenant side. This aspect is very important in view of today's ever more rapidly changing requirements.

Increase in tenant loyalty

With the internet, real estate market transparency has increased enormously, enabling tenants to compare properties efficiently. This in turn equates to greater market power. The consequences are lower barriers to switching and reduced partner loyalty. Proactive support helps to strengthen the tenant's relationship and trust in the landlord, increasing the likelihood that they will want to stay in the property in the long term.

Avoidance of costs 

Every change of tenant incurs costs for both tenants and owners. For the tenants, these are directly measurable costs for clearing the rented space, relocation, installations at the new location, etc., as well as for any interruptions to operations and increased management costs. For the owner, there are costs in particular for the provision of the premises, marketing and loss of rental income. With continuous tenant management, tenant changes and the associated costs can often be avoided.

Increase in value

Properties with strong tenant loyalty often have a lower vacancy rate, which contributes to positive value development. Overall, active tenant support can help to build a positive relationship between landlord and tenants, minimise conflicts, increase tenant satisfaction, stabilise income and ultimately increase the value of the property in the long term.

What resources are available?

Regular communication

Regular contact with tenants, whether in person, by phone, by email or via an online portal, is essential in the commercial segment. It is important to find out more about tenants' needs, obtain feedback on the property and offer support in the event of problems.

Fixed, periodic measures establish a structure and simplify communication for all parties. Examples of this are:

• Consultation hours: Fixed times at which tenant concerns can be raised in person promote direct dialogue and demonstrate a willingness to cooperate.
• Newsletter: Information to tenants about planned maintenance work, new tenants or other relevant topics
• Tenant events: A platform for exchanging important information or presenting general news.

Search for solutions

Tenants' concerns should always be taken seriously, even if the tenants' and landlords' assessment of the need is often not congruent. With constructive solutions, it is often possible to meet the needs of the tenants and at the same time create added value for the owner in the long term through the customer loyalty gained.

Customer service

It is important for tenants to have access to efficient customer service that responds quickly to questions or problems and provides solutions. In contrast to solutions with a hotline, a support email address or an online ticketing system in the residential sector, direct communication with the management or owner must also be available to tenants in the commercial sector.

Regular inspections and maintenance

Proper inspections of the property allow potential problems to be recognised and rectified at an early stage. Together with a reliable maintenance service for repairs and the necessary maintenance work, disruptions to operations can be avoided.

Additional services

Additional services and amenities that make it easier for tenants to operate, such as cleaning services, security services, parking facilities, access to conference rooms or communal facilities, create added value and can be a decisive criterion for tenants when choosing a location.

Community-building activities

Organising events or activities strengthens the community among tenants and promotes the exchange of ideas and experiences. The active participation of property owners offers good opportunities to gain insights into tenant satisfaction or to pass on important information to tenants.

Technological solutions

Modern technologies such as online portals can simplify communication and interaction with tenants. Even if personal contact should be the priority for commercial property operators, portals and apps offer tenants a good opportunity for uncomplicated, efficient initial contact with the management or owner in order to subsequently address the usually more complex concerns of commercial tenants.

Conclusion

Maintaining existing tenancies requires a high degree of professionalism, commitment and empathy. Through open communication, proactive conflict management, regular maintenance measures and solutions based on partnership, landlords can not only maintain the value of their properties, but also gain satisfied tenants in the long term. A well-maintained tenancy is particularly helpful in difficult situations and is ultimately the key to successful and sustainable property management with the corresponding positive effects on income security and value appreciation for the owner.

How is tenant support optimised at SFP Group?

Tenant satisfaction with the management or ownership and with the property is a key element in the long-term stability of a property portfolio. SFP Group therefore attaches great importance to actively supporting its tenants. This is exemplified by the following measures

• Active asset management: To ensure permanent tenant contact, SFP Group's asset management staff look after a relatively small number of properties compared to the rest of the industry. They are therefore in direct contact with the tenants via the management or in the event of important issues.
• Portfolio management regulations: At SFP Group, the tasks and competences of asset and portfolio management are set out in detail in a comprehensive manual. With regard to tenant management, the frequency with which the property management, asset management or portfolio management teams hold tenant meetings is clearly defined.
• Tenant events: The asset management organises tenant events at various properties. These are either organised based on a project after a special event, such as the completion of renovation work, or in a structured manner as a platform for periodic exchange. For example, a drinks reception was organised with all tenants at the property of the SF Commercial Properties Fund in Buchs AG following the completion of a new development and the provision of new rental space.
• Tenant survey: All vehicles conduct an annual survey on tenant satisfaction and needs. After analysing the results, appropriate measures are defined and implemented in cooperation with the management.
• Invitation to events of SFP Group: Wherever possible, tenants of the various investment vehicles are also invited to SFP Group customer events. This emphasises the high esteem in which the tenants are held and enables personal contact in an uncomplicated setting.

"The SF Commercial Properties Fund has been able to continuously reduce vacancy, which is certainly a great success. However, it is at least as important that we are able to continually extend rental agreements. Overall, thanks to our active marketing and consistent tenant management, we are able to maintain the weighted lease term of all rental agreements (WAULT) at a high level of around five years and create income stability for our investors," states Hans-Peter Wasser, Portfolio Manager Real Estate Direct of the SF Commercial Properties Fund.

Tenant voices

Planzer Transport AG has been a tenant of the entire SF Commercial Properties Fund property in Lyss since it was built. This year, the air conditioning system will be repaired by the owner and the property will be connected to the district heating network.

Philipp Bättig, Head of Real Estate at Planzer Transport AG, confirms the good cooperation as follows:

This translation was created using artificial intelligence. The original German version is binding.