Fully capitalizing on any commercial or multifamily real estate investment opportunity is occupancy. Long term tenants typically help yield the best total returns on a property, but this has become trickier and more controversial in the transitional period we are in now. Business and residential tenants are currently influx more than they have been in many years. On the flip side as rents rocket many landlords are looking to cash in on new, and more profitable leases.
However, this must still be offset by demanding consistent occupancy or risk self-sabotaging out of greed. The key to maximizing occupancy and achieving zero vacancy today is all about building a tenant waiting list.
Best Practices for Building & Maintaining a Tenant Waiting List
Real estate investors with multiple holdings will find constant marketing key to a consistent stream of prospective tenants.
There are many traditional and now internet or technology based real estate marketing options which can be used to generate residential renter and business leasing leads.
- Property signage
- Direct mail
- Outdoor advertising
- Online classifieds
- Social media
- Using real estate agents in exchange for commissions
Simply marketing for and then burning leads which aren’t needed immediately or don’t qualify can become extremely expensive for all but the bigger real estate investors and investment firms.
It’s far smarter to maintain a database with automated follow up and triggers for re-contacting prospects when units are becoming available and to cultivate free referrals.
Still this is going to take a big bite out returns and cash flow for most multifamily and commercial real estate investors.
Fortunately, this can all be trumped by retaining a full service property management company who is already doing this and has a list. They bear the brunt of the expense and all the time involved. You as the investor enjoy better returns and cash flow.
Mixed Use Developments
This concept works equally well for office and mixed use developments as well.
Coworking, Facebook’s new ‘company town’ and high office rents in other NE states are all converging trends which are building value in markets outside of Greater Boston.
So whether you are contemplating a dive into office or multifamily leasing to capitalize on the overflow or are considering developing your own mixed use project consider the enhanced returns connecting with a local property manager to fuel with your property with great tenants can offer…