If a commercial property is to attract high quality tenants then preparation is the key to the tenant continuing to look for accommodation. Preparation is the property manager’s weapon to create a positive, attractive and open enquiry in the leasing of premises. The tenants and the property both need to be prepared for the movement of tenants. Preparation is also critical to keeping the negotiations on time and within market terms.
The checklist below will help you focus the improvements needed in commercial, industrial, and retail premises. In doing the necessary ongoing property activity, the focus on the key issues will help you close more lease deals. Use this checklist with any new property management or leasing manager; it is a good list to start the lease lease process.
Everyone likes to have a checklist to assist them with the lease documentation process, lease marketing, and lease negotiation. Preparation of the important issues is the most important process. Preparation is a low cost way to get the lease underway and closing. The tenancies know what is happening, so the lease deals are much easier to close.
Preparation should be thorough in each and every lease document, so it can not only be quoted at lease creation. Preparation should also come to the listing and lease renewal stage, so that all critical issues can be highlighted and actioned. Preparation in lease documentation is essential to control the process and avoid errors.
The solicitors involved in lease creation should be careful of providing or relying on any facts or accuracy simply because they are so important in the transaction. Any error in lease documentation could be regarded as serious and the lease marketing fee could then be setup for legal process.
A copy of lease documentation should be maintained in a safe and accessible location in a easy to locate location, such as the office. This will allow the landlord to refer to the documentation as needed. The struggle to find leasing document is often when the tenants are to close a tenancy immediately. This is why the marketing of leased premises today is supported by electronic record-keeping and dedicated leasing offices. The electronic documentation is the key component to a successful lease marketing today.
Having a property with a highly experienced tenant mix will assist with the lease marketing and lease entry process. When any lease or tenancy management difficulties occur, the tenancy mix of the property becomes the main individual headache for the property manager or landlord. It is the tenancy mix that brings all the occupancy pressures to bear on the property and its occupants. In the same way, preparing a tenancy list is critical to the success of the lease marketing and leasing process.
The lease documentation should be mined for critical and relevant dates so that all tenancies are familiar with when they should comply with the negotiated or determined dates. Critical dates are lease and occupancy dates that deal with rent reviews, lease renewals, lease options, and abatements. The lease or tenancy document is the building codes or other legally important documents which will guide the property owner or landlord as to when certain things need to occur.
You should also look for critical dates that deal with functioning of the plant and machinery in the property. You also need to identify critical dates to the income stream and the customers of the property.
Your lease or tenancy document will be an index of obligations and impacts on the property. Look for dates of these events and understand where the events are taking place, and how that will impact your tenants.
You need to understand the timing of lease and tenancy activity and be comfortable with the tenancy and lease document terms and conditions that are used in each lease. Some property leases have critical dates within the lease document, and they should be peripheral dates. The lease occupancy and lease terms should be fully negotiated and aligned to the existing occupancy costs in the property.
The budget of income and expenditure performance of the building should continue into the future beyond the current financial year. The financial reporting process of the property should allow for the normal fluctuations of tenancy activity and tenancy budgets. Keeping in close contact with the changes to the property cash flow will be important for the future of the property.
The lease terms and conditions for a property should be personally controlled by the property manager or leasing manager so the lease document is always on hand to refer to. The documentation process of the current leases will permit the property to perform well and grow sales and customer enquiry over a period of time. Seen from this point of view, the 30 plus year leases in a property are more effective than the chosen net or gross lease which is usually negotiated in 24 month intervals.
The tenancy date is a very important property lease implementable date. Every tenancy schedule should be checking and reconciled in an electronic lease tracking system at least once per month. The accuracy of the tenancy schedule is critical to the timely function of the property.
The tenants in the property may vary from tenants within the building or those that are tenants involved in relocation.