Commercial landlords, I have a question. When was the last time you, or your managing agent, re-read your commercial lease? Despite aims to standardise, we all know that leases come in all sizes, styles and types. Owing to the tough trading times many landlords have taken a view on certain aspects contained within commercial leases. Are the agreements and circumstances still appropriate? Has anything been overlooked?
Leases can be detailed, complex, containing numerous responsibilities and obligations. It is prudent to review things from time to time, to ensure that things that should be done, are being done and no notices or other requirements are missed. If you’ve made personal concessions reflecting the tough times, do they need to be reviewed, are they still applicable and what are the consequences?
The potential scenarios are endless but as part of a proactive approach to commercial property management, a review is prudent! Things worth some consideration might include (but this list is not exhaustive).
- Review all the lease provisions.
- Rent. Are their outstanding reviews? Has the market moved?
- Any tenant improvements or alterations?
- Is any maintenance work required?
- Has their been and subletting?
- Are there any security deposits and their conditions?
- Is the tenant holdingover?
- Is there a service charge provision or opportunity to reclaim any landlord charges within in the lease?
- Personal guaranties?
- Have there been any concessions?
- Lease term, start dates, end dates and effective dates.
- Consider all options, as part of a full appraisal.
Don’t assume! Don’t rely on your memory! Both of these can be very costly! Perhaps it is time for a review of your property management strategy? Ensure that you are up-to-date and fully informed!
If you feel I can help, why not call for a chat, that’s what I do with my clients, communicate!
01271 324251 or email email@example.com