Posted by Jack E on November 04, 2008 at 14:21:34:
I would call that thinking outside the box. Right on.
How to raise rent for office tenants? - Posted by Patrick
Posted by Patrick on November 04, 2008 at 10:19:26:
I own a large historic home that I rent out as office space to regular, long-term tenants in the second floor rooms, and I also rent the large first floor rooms as meeting/banquet space to groups for special events. I want to raise the rents I’m charging my office tenants, but I’m afraid that I may loose one or more of them if I do. Can anyone offer suggestions on how to negotiate fair rent increases for commercial tenants? The house is located in a small city in West Virginia.
If you want to be cautious - Posted by Rich-CA
Posted by Rich-CA on November 04, 2008 at 17:07:10:
then figure what it would cost them to move and get started in another, comparable location. Then raise the rent to that level (divided evenly over 12 months). If they make a business decision, the loss of productive time from the move will cause them to decide to stay since you will have neutralized the savings in rent from a move.
Another possibility is to add value that costs you a lot less to provide than the rent increase. For example, providing internet access or PBX type services.
Re: How to raise rent for office tenants? - Posted by Ken
Posted by Ken on November 04, 2008 at 11:39:55:
A friend of mine had a commercial space and was worried they might move also.What he did was start with the one he cared the least about moving and jacked his rent,when it was clear he moved to the next leat he cared if he moved and so on.By the time he got to the ones he did not want to move he really didn’t care anymore since the other rents were so much higher he knew he could fill the units if anyone moved out