As a landlord, you’re always looking for ways to give a boost to the bottom line. With technology a huge part of that bottom line these days, it only makes sense that you’re going to look to it not only to increase revenue but to improve your tenants’ experience as well.

So what are the ways in which you can do this? Here are a few that we’ve collected:

• Use machine learning and artificial intelligence for optimal pricing strategies. With many new companies emerging with the exact intent of using data analytics and machine learning to predict rent-related factors, you won’t have to do all the heavy lifting yourself. These companies include Enodo as well as HouseCanary – but you’ll be able to find many competitors out there as well.
• Include high-speed internet in the rent, which in turn increases the rent you’ll be able to charge. Starry Internet is a great example of in-house internet that you can install, giving tenants quality internet connection and yourself a reason to increase your rent roll.
• Collect payments via technology in order to reduce your late-pay and no-pay numbers. This is a fairly simple and very effective technique that can either be implemented by you as a landlord or by a technology or property-management team. It also gives a better tenant experience as it can be far easier to pay your rent online than to mail a physical check or even do it through your bank’s bill pay. Tenants these days are all about streamlining their experience – and offering online payments does just that.
• Use technology such as Nest to manage your building temperature, water, and other utilities for sustainability and to save on waste. Not only can you do this online, but you can do it from anywhere – heck, you can be in Taiwan and still able to control your building’s utility use. Now that’s a great use of tech.

All this can really improve your bottom line. Take EQ Office, for example. As reported by Bisnow, the rebranded Equity Office Properties has shifted its real estate strategy to move toward a focus on customers rather than on assets.

EQ Office vice president of real estate technology and innovation Ryan Salvas told the publication that one way to improve user experience is to offer applications that better anticipate end-user needs rather than simply acting as a cluster of apps.

Salvas expanded on this, offering example of machine learning such as figuring out most common reasons for using the app – for example, going to the gym. The app can be configured to notify the user that they can schedule the same class that they took the previous week.

Salvas added that EQ Office is putting these capabilities to the test in its Willis Tower in Chicago – with one of the largest challenges apparently the implementation of newer technology in older buildings without simply ripping everything out and starting anew.

Commercial leasing is a complex business. Understanding terms, finding the right properties, negotiating the best short or long term deal possible is all complicated by the detailed financial and legal processes that have to be secured along the way. Without the aid of a professional broker, tenants can find themselves locked in a long term deal that doesn’t work all because of some common leasing misconceptions.

#1: Trying to Lease in Retail is Futile

Unless speaking of online retail, the industry has taken its lumps over the last couple of years, leading many to believe that trying to lease retail space in this climate is futile. As of last year, nationwide rents climbed to nearly $17 psf – higher than at any time in the last decade. Even mall retailers saw close to 30% rent increases from 2016 to 2017.

#2: Your Leasing Options are Non-negotiable 

When the markets change – either decline or excel – renewal options become determinant to how you will proceed during negotiations. At the start of a lease, you negotiate extensions, renewal options, and rate increases. Your landlord will want to charge X, you have the right to negotiate Y.

Nothing is set in stone until all parties have signed on the dotted line. In a renewal, if you’ve been a good tenant, you can push for incentives and inducements to entice you to stay in your lease. Having a skilled broker that knows the market climate can help make the case for improvements, inducements, rent reductions, etc.

#3: A Landlord Can Charge Whatever They Want

Some tenants get into commercial leases thinking that the rates will stay about the same. Landlords go in expecting to increase rates according to inflation – but what inflation? Economic headwinds affecting one part of the country may not be affecting another. Instead of simply accepting a regular increase, factor your rent against your local inflation rate and not the national Consumer Price Index.

#4: Going with Green Leasing Will Cost You Money

Finally, today’s tenants are looking for greener commercial buildings. At the same time, the amount of work it takes to meet the many different standards has been cost-prohibitive. Leased commercial buildings make up a majority of leases and use up 36% of all of the electricity used in the U.S.

Green buildings are just the first step. There are companies out there aiming for Net-Zero Energy (NZE) use in commercial leasing. A big myth about NZE buildings is that you won’t get the same returns as you would in a non-NZE building.

Green builder RMI leased its first NZE building in Colorado a few years ago. It was the company’s chance to prove that NZE buildings work for all companies and not just eco-activists. The truth is, NZE buildings are yielding nearly 20% more ROI in the long term and 17% more in the short term.

Occupancy rates are at least a few percentage points higher compared to less efficient buildings. Building owners are able to charge more for NZE buildings than those backed by Energy Star and far more than traditional buildings, especially as millennials continue to take over the workforce.