Administering a lease can be very stressful to a new tenant. Fortunately, we can share some key items that should be standard practice and that will keep your new commercial lease running smoothly.
Renewal Reminders
Renewal reminders are great for both the tenant and landlord because they remind both parties they’ll need to make a decision on the space soon. These reminders can come in the form of a letter, email, or phone calls. For the tenants, reminders can be a great way to keep track of when to renew the lease or decide to look for another space. For landlords, reminders can be great to get a better idea of what the current tenant in planning on doing before the notice date arrives. It’s a great way for both parties to be knowledgeable of all upcoming dates with no surprises.
NNN Audits
Triple net (NNN) audits are useful for both the tenant and the landlord to keep each other accountable for certain costs. An audit of the NNN lease allows for the tenant to confirm that the maintenance charges the landlord sends to the NNN tenants are accurate. As a landlord, having this clause in your lease can make the tenant feel more comfortable in the space they are renting. The audit clause should cover who performs the audit, who pays for it, and how the findings of the audit will be handled.
Certificates of Insurance
Having proof of insurance is important for both the tenant and the landlord, for obvious reasons. For most commercial leases, the tenant is required to provide certificates of insurance to show the insurance is valid. The landlord needs to confirm the tenants carry the appropriate insurance and that the landlord is provided with certain protections. Ultimately, understanding the benefits and risks in relying upon insurance certificates is important. It is important to know that not all insurance certificates are going to be the same forms, but the forms of certificates created by ACORD have been used as standard practice.
Open Communication
Open communication with your landlord or their designated property manager is extremely important. Your landlord has an interest in seeing your business succeed, since your success adds to the reputation of the property as well as contributing to the financial performance of the property. Having open communication and a solid relationship with your landlord means that if there are bumps in the road during the course of your lease (and there likely will be) then you have a foundation to work with in finding a mutually agreeable solution.
Guiderock Commercial Realty LLC is here to help with any questions you have about administering your lease after signing. Contact our associates to learn more about our lease administration services.
