Continuing the comments about tenant management plans, here are some more important factors to put in your plan for the commercial or retail building. All tenants should be monitored for lease compliance and the critical dates within the leases. It is quite easy to overlook terms and conditions of the leases that require response or action. A diligent property manager or landlord will take steps to ensure that all critical dates are in entered into the software based lease management program. That being said, the use of software is only as effective as the data that has been captured and entered into it.risk and reward in tenant management offers excellent info on this.
The process of tenant clustering is an effective way of handling tenant mix management. When it comes to retail buildings with multiple occupancy, it is strategically wise to cluster tenants of a alike type or permitted use into the same area. This extends the customer interest and potential for future sales. Each tenant therefore feeds off the sales of each other.
Any property should have a strategy of ongoing refurbishment. The tenant mix and also the management plan will be balanced around the need for refurbishment in common areas and within tenancy areas. It can be necessary for refurbishment obligations to be imposed on the tenant through the terms of the negotiated lease at the time of lease creation. In older buildings this is a wise strategy.
As part of building occupancy, and tenants will have requirements regards maintenance and common area usage. Maintenance events, or challenges, and repairs will involve communication with tenants. By keeping them informed you retain their cooperation in the overall function of the building both now and in the future. When maintenance events have been reported by the tenant, they should be responded to in a timely way so the tenant feels that action is being taken. In some owner managed buildings, the restriction and emotion around the landlord spending money will sometimes influence a lower standard of property maintenance. Every landlord likes to save money where possible although the presentation and function of the property should not be compromised as a result.
Every tenant will have specific occupancy needs. Some of them will have specific fitout needs. From time to time during the terms of the lease, it is likely that the landlord will be asked for premises modification. Normally speaking this will be at the cost of the tenant although at the end of the lease it may form part of the new lease incentive provided by the landlord. When the property market is experiencing challenges, is best to keep your existing good tenants happy in occupancy. This is where a tenant retention plan is a wise move for property managers and landlords to implement.
As a result of tenant occupancy, it is sometimes the case that the tenant will be in default and in breach of lease. In all situations of this nature, it is fundamentally important for the landlord and the property manager to take timely action under the terms of the lease given the critical dates and response methods there outlined.