Final answer:
When facing high vacancy rates, a property manager should implement marketing strategies to attract tenants rather than raising rents, which can be counterproductive.
Step-by-step explanation:
If there are high vacancy rates in a managed retail or office property, the property manager should not simply increase rent to compensate for the vacancies. Instead, they should focus on implementing marketing strategies to fill vacancies. Increasing rent can potentially lead to even higher vacancy rates by making the spaces less attractive compared to other options in the market, while decreasing amenities might save on costs but could make the property less competitive. Given the first rule of economics that everything has an opportunity cost, there needs to be a balance between the price charged and the quality of the housing or commercial space offered to attract tenants.
Furthermore, implementing marketing strategies can be a proactive way to address the underlying issues causing the high vacancy rates and is part of a thoughtful approach to property management that aims to provide value to both tenants and property owners.