Landlord and Tenant Engagements
When a tenant enters into a lease agreement the landlord are not mutually exclusive relationship. Any good relationship between a landlord and tenant relations begins with a clear understanding of the rules and regulations along with provisions of the lease agreement. During the lease period it is important that the servicing of the lease is done correctly and effectively. Renewals of lease agreements are an important part of the lease agreement as well because they do save a landlord the costs of improving an office or warehouse space for the next tenant which saves them money.
Tenants who receive a diligent, fair and equitable service from a landlord will most like stay in their space and renew their lease agreement. Based on the economic circumstances , a landlord may become convinced that it is more profitable to provide good services to a tenant than to focus on short term financial rewards. At the beginning of any move in by a tenant, Shire Commercialrecommends that their clients use a punch list and inspect the premises to make sure all alterations have been completed to their satisfaction. The landlord’s representative or the landlord should be present to make sure everyone is on the same page which will help avoid any misunderstandings.
Here is a summary of the basic lease terms that need to be understood by both parties, understanding meaning clarity and realizing who is responsible for what in the lease document.
- Building rules and regulations
- Handling maintenance requests- who is responsible for specific repairs of specific items
- Procedure for paying rent, late fees , security deposits, personal guarantees
- Terminating the tenancy early
- Subleasing if required
- Relocation clauses
- Signage rules, parking, usage rules and holdover provisions
- Insurance requirements
Communication is critical and should be very clear not vague. There are typically 15 pages to a lease agreement and the bullet points above do not cover every detail of those 15 pages, therefore as a client’s broker, your broker should be able to give you a review of what is important. It is always a good idea for landlords to solicit their tenants for inputs regarding the handling of the property and amenities as well as the services being provided by the landlord.
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