When it comes to owning and managing investment property with multiple occupants, the tenant mix and strategy you set is quite important to the future of the property.
A poorly planned tenant mix will threaten the income for the property and potentially create a greater number of vacancies.
The landlord and the tenants will be unhappy for all types of reasons when poor decisions are made here.
A good property manager will set and control the tenant mix for the landlord.
The tenant mix will be optimised for the business plan for the property.
Income and expenditure will be part of the decision process.
All the leases for the occupants will be reviewed and the terms and conditions contained therein will be integrated into the cash flow plans for the property.
Tenant mix becomes really important when you have multiple occupants in the same property and when they are close to each other.
A poorly planned mix can impact the other tenants in the same area.
When it comes to retail property, customers can see when things are not working in a property and will start to find some other place to shop.
So when planning your tenant mix or strategy you need to consider the following:
Importantly the tenant mix becomes part of the business plan for the property which then underpins the income and expenditure blueprint for the landlord.
A poorly planned tenant mix will threaten the income for the property and potentially create a greater number of vacancies.
The landlord and the tenants will be unhappy for all types of reasons when poor decisions are made here.
A good property manager will set and control the tenant mix for the landlord.
The tenant mix will be optimised for the business plan for the property.
Income and expenditure will be part of the decision process.
All the leases for the occupants will be reviewed and the terms and conditions contained therein will be integrated into the cash flow plans for the property.
Tenant mix becomes really important when you have multiple occupants in the same property and when they are close to each other.
A poorly planned mix can impact the other tenants in the same area.
When it comes to retail property, customers can see when things are not working in a property and will start to find some other place to shop.
So when planning your tenant mix or strategy you need to consider the following:
- Lease start and end of each tenancy relative to others.
You do not want multiple vacancies coming up at the same time unless you want to do a refurbishment. - The types of rent that should be charged in each location.
Rents for each shop or suite should be set with due regard to location and customer traffic. - Cluster like tenants around each other so you get small precincts within the property for customers to extend shopping and spend.
- Make it easy for the customer to spend time at the property by creation of common areas and adequate seating.
- Customers want to feel good when then visit a shopping centre, so look at all decisions from a customer perspective.
- Food and entertainment should be integrated into the retail property to extend customer interest and time shopping.
- Locate anchor tenants on the property so the customers walk past the smaller retailers.
Ensure that the anchor tenant is well chosen and is locked into long term occupancy. - Track the customer visits to the property through all doorways on all days of the week.
This will allow you to determine the access patterns of the customers and set the rental premiums for different tenant locations. - Gather turnover information from all your tenants weekly or monthly so spending patterns across the different tenants can tell you of customer trends.
- All services and amenities to a property should be designed and maintained to both tenant and customer usage.
A property has to work well and give the right impression.
Importantly the tenant mix becomes part of the business plan for the property which then underpins the income and expenditure blueprint for the landlord.
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