by Lisa Carpenter:

As Valentine’s Day approaches, it occurs to me that the relationship between an owner and their building is like a love affair. In good times, it’s easy to get along. The owner is doing his part by managing operations and the tenant is doing her part by paying rent – a perfect balance. But what happens if the owner becomes complacent and takes his tenant for granted?

Maybe he ignores some of the warning signs. A late rent payment here and there, shorter hours of operation, an empty office or two – but she’s still in business. Everything will work out.

Then comes the dreaded call to his office. She can’t keep the truth from him anymore. She has to close down operations at this location. The “going out of business” sign appears in the window and she’s moving out over the weekend.

The owner believes this is a unique occurrence and it won’t happen again… and then it happens again, and again. Now he is facing 20% vacancy and he still doesn’t have a plan. His only response is to post a “for lease” sign in the window… and again he waits.

Rather than sitting back and waiting for vacancy to cure itself, there are some steps he can take to avoid drastic income loss.

Heed the warning signs – If a tenant can’t pay their rent this month, they may not be able to pay next month either.

Consult an expert – Know what a vacancy will cost before the space is vacant. We can research market rents and vacancy rates to determine the best approach.

Plan ahead – Don’t be reactive, be proactive. The more information an owner has, the better his position to negotiate with existing or future tenants.

How much is it costing to wait? More than the lost rental income. The longer a space remains vacant, the negotiating power of the tenant increases.

Call (617) 674-2457 today for a free vacancy analysis.
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