In a commercial or retail property, it pays to have some sort of checklist that applies to the move-in procedure with tenants. The checklist will always help you stay up to date when it comes to the correct processes and approvals.
First of all, it must be said that a tenant should not move into a premises until the lease paperwork and all financial obligations have been satisfied.
The same rule applies to building clearance and compliance as well. Tenant is not to have access to the premises in any way, shape or form until he has successfully signed all lease paperwork and paid rent and any necessary collateral.
Different types of premises
There is a clear difference in the complexity of the moving checklist that can be applied when dealing with different types of property. Retail property is perhaps the most complex type of property, and for that reason, you will need a more detailed checklist. Office property will normally have fewer issues to worry about, however the checklist will still be reasonably detailed. Industrial property is always more basic and simple when it comes to tenant lease negotiations, equipment design approvals and move-in procedures.
So let’s take a look at the checklist that can be built around commercial and retail property management and leasing. These are some of the big elements around which other local and ownership issues can be added.
- The lease must be fully signed between the owner and the tenant. If the lease is to support the final compilation of a lease document, that should have happened as well.
- Any monies associated with the tenant’s rent, rental guarantees, furnishing monies, security, deposits, and occupancy must be paid by the tenant before access is granted.
- Agreements must be reached between the parties regarding construction, approvals, design and layout. Such retrofit work should not begin until the necessary landlord approvals have been granted and the local building authority has issued the appropriate building approvals.
- As long as the above three points are fully met and implemented correctly. You can then move on to a simple checklist of issues to implement and move forward.
- Here are some of those things to incorporate into your checklist.
- The names, address and contact information of the tenants who will settle in the premises.
- Details of access to the premises must be established and agreed between the parties. That also includes any anticipated move-in dates. The lease contract or contract associated with conditioning works must also be controlled with regard to access.
- Provide the tenant with a list of property contacts for any general inquiries, but also those related to any emergency issues. Those contacts would typically include a property manager and maintenance contractors.
- Any special terms and conditions under existing lease documentation must be verified by the tenant as part of occupancy. That would normally include insurance obligations.
- Secondary tenure issues related to any additional licensed space and car parking should also be reviewed and implemented. These types of secondary issues may be supported by secondary documentation, such as licenses for side deals.
- Inform the tenant of security issues related to the property and facilities. Take the tenant through the modes of access to the property during the day and after hours.
- Post the tenant listing on the tenant directory board as soon as they occupy the premises.
- Let the other tenants in the property know about the new tenant at the new location. Let new tenants to the property know about the other tenants near them. It is important that you integrate the new tenant into the existing tenant mix and the overall chemistry of the property.
- Provide the new tenant with the rules and regulations that apply to emergency procedures within the building.
- Exchange of premises keys so that any emergency access can be provided as required.
These are some of the rules that may apply to the installation of a new tenant in an existing commercial or retail property. This list can be expanded depending on your location and type of property. You can even have separate checklists for the differences between commercial, office, and industrial property.
stay organized
An organized process or approach to tenant occupancy always helps the smooth transition of a new tenant to an existing investment property. A tenancy relationship between a landlord and a tenant lasts several years, and on that basis, it should be started successfully and professionally. That is the job of the property manager.