In a commercial or retail property, it pays to have some form of checklist that applies to the move in procedure with tenants. The checklist will always help you stay on track when it comes to the correct processes and approvals.
First and foremost it should be said that a tenant must not move into premises until the lease documentation and all financial obligations have been satisfied.
The same rule also applies to fit out construction and compliance. The tenant must not have access to the premises in any way or form until they have successfully signed all lease documentation and paid the necessary rental and guarantees.
Different types of premises
There is a distinct difference in the complexity of the move in checklist that can apply when it comes to different property types. Retail property is perhaps the most complex of property types and for that reason will have a more detailed checklist. Office property will normally have less issues of concern however the checklist will still be reasonably detailed. An industrial property is always more basic and simple when it comes to tenant lease negotiation, fit out design approvals, and moving procedures.
So let’s look at the checklist that can be constructed relative to commercial and retail property management and leasing. Here are some of the big items around which you can add other matters of the local and property nature.
- The lease agreement should be completely signed between the landlord and the tenant. If the lease agreement is to support the final compilation of a lease document, then that should also have occurred.
- Any of monies associated with the tenant rental, rental guarantees, fit-out monies, security, deposits, and occupancy, should be paid by the tenant prior to access been given.
- Agreements should be reached between the parties regards the fit out construction, approvals, layout, and design. Those fit out works should not commence until the necessary landlord approvals are given, and the local building authority has issued the appropriate construction approvals.
- Providing the three issues above are completely satisfied and correctly implemented. You can then move to a simple checklist of issues to implement and move through.
- Here are some of those things to incorporate into your checklist.
- The names, address, and contact details of the tenants to be installed in the premises.
- Access details for the premises need to be set and agreed between the parties. That also includes some anticipated moving date. The tenants contract or associated with the fit out works will also need to be controlled when it comes to access.
- Give the tenant a list of contacts for the property relating to any general enquiries but also those that relate to any emergency issues. Those contacts would normally include a property manager, and maintenance contractors.
- Any special terms and conditions under existing lease documentation should be checked for compliance by the tenant as part of occupancy. That would normally include insurance obligations.
- Secondary tenancy issues relating to any extra licensed space and car parking should also be reviewed and implemented. These types of secondary issues may be supported on secondary documentation such as licenses for side agreements.
- Brief the tenant on security issues relating to the property and the premises. Take the tenant through the modes of access to the property during the day and then out of hours.
- Install the tenants detail on the tenant directory board as soon as they occupy the premises.
- Tell the other tenants of the property about the new tenant in the new location. Tell the new tenants in the property about the other tenants located near them. It is important that you integrate the new tenant into the existing tenancy mix and the overall chemistry of the property.
- Deliver to the new tenant the rules and regulations that apply to emergency procedures within the building.
- Exchange keys for the premises so that any emergency access can be provided as required.
So these are some of the rules that can apply to the installation of a new tenant into an existing commercial or retail property. This list can be expanded subject to your location and property type. You may even have separate checklists for the differences between retail, office, and industrial property.
An organized process or approach to tenant occupancy always helps the easy transition of a new tenant into an existing investment property. A lease relationship between a landlord and tenant goes for a number of years, and on that basis should be commenced successfully and professionally. That is the job of the property manager.