Creating a Preferred Vendor Program Can Deliver More Tenant Value
Updated: Oct 5, 2020
How property managers can differentiate themselves and increase retention
Finding quality, affordable vendors can be challenging for small- to medium-sized businesses. It can take a lot of time sourcing utilities, janitorial services, telecommunications and other commercial property-related needs. Many companies like these are too busy with daily operations, and just don’t have the bandwidth to field lots of calls or visits from salespeople, conduct interviews, evaluate proposals, negotiate price and then oversee implementation and measure impact. While the process can be overwhelming, the good news is property management companies can help.
Property managers have spent years procuring a list of preferred vendors across millions of square feet of common commercial spaces. As such, it’s no surprise the landlord is often the first call tenants make to inquire about trusted and highly qualified contractors and vendors.
Many property management firms have already recognized this as an opportunity to deliver more value to their tenants. By establishing preferred vendor programs, landlords pass along vetted vendors and pre-negotiated prices to their clients resulting in savings up to thousands of dollars a year. This type of a program is a win-win for commercial property management companies and their clients.
Here are three ways property managers can benefit from implementing a preferred vendor program:
Differentiation from the competition. Though accommodations and location often lead the decision-making process of where to lease space, a preferred vendor program may help sway the client to choose your company’s options over another space under consideration. Clients can confidently sign knowing there is support when needed.
Increase tenant satisfaction, increase tenant retention. Happy clients tend to stay put longer, and a preferred vendor program can help them easily find solutions for a range of needs that pop up over time. If your referral saved them money or prevented them from having to close due to a problem, they may not only renew a lease but they’re also more likely to recommend you to other business owners.
Create a competitive leasing package. Proactively promoting a preferred vendor program in the leasing package can help increase revenue. Using testimonials and other client examples to demonstrate how others have benefited from the program sets expectations and underscores the value your company delivers. Be sure to mention that your company receives no financial compensation whatsoever for vendor referrals to build trust with your tenants.
Ready to jumpstart a preferred vendor program? It’s recommended to start with the most trusted partners that align with the frequently requested areas of need and see how clients respond. For example, consider the major source of energy used in commercial buildings is electricity (61%) followed by natural gas (32%). An energy partner like MD Energy Advisors can review tenant bills and offer commercial solutions in areas such as energy procurement and energy efficiency projects to save tenants’ energy spend. MD Energy Advisors can also provide marketing materials to simplify the property manager’s process of sharing the opportunity with clients.
Contact MD Energy Advisors to discuss your preferred vendor program and discover how to deliver more value to your tenants.
At MD Energy Advisors, we’ve been empowering commercial clients to make informed decisions about energy since 2010. Over the years, we’ve seen how a bit of extra insight during the due diligence phase can pay off in the end—whether that’s savings or peace of mind or both.
MD Energy Advisors demystifies energy through education, and can help commercial real estate clients increase asset value by anticipating and solving their energy problems. Learn more at www.mdenergyadvisors.com or call us at 410.779.9644.