Commercial Contractor - How to avoid common, but costly, tenant mistakesEvery developer and contractor needs to be conscious of circumstances by which their tenants can cost them significant amounts of money. Tenant mistakes can often be expensive in the event the developer or contractor needs to handle the financial repercussions of the mistakes. Common tenant mistakes that will cost you a fair amount of money include building renovation, tenant improvements, injury or other causes for liability around the premises, tenant cash flow problems, tenants that do not relocate promptly, and tenants who misrepresent themselves during lease negotiations.
Discussed below are some of these common tenant mistakes and ways that developers and general contractors can stay away from them.
Building renovation and tenant improvements. Most tenant leases for commercial properties should include a provision or provisions that prohibit tenants from making renovations, changes, or improvements towards the property without permission or approval from the person who owns the house. In commercial construction projects, developers and construction management generally don't want tenants selection concerning the construction from the property without talking to them first. The explanation for the reason being tenants may add or renovate the house so that can lower value of the property.
This mistake could be prevented quickly, however, by reminding tenants once they sign the lease they cannot make changes for the property without asking permission from construction management and from your those who own the home. It's also advisable to talk to your attorney and include in the lease the supply that when the tenant does opt to make alterations, they shall be in charge of paying for the job and then for any financial loss suffered due to the modifications. This can ensure that you are legally shielded from the expenses associated with tenants who make an unauthorized building renovation or tenant improvements.
Injuries about the property as well as other reasons for liability.In some instances, if someone is injured about the commercial property, whether or not they really are a tenant, you might wind up suffering the consequences. For example, in case a customer of your tenant gets hurt on the premises, set up tenant caused the damage, the owner or property owner could be accountable for the damages in the injury. And when a tenant is hurt, especially because of a building issue or during the commercial construction process, then your general contractor or construction management may be held responsible for the damages from the injuries as well.
Not honoring the move in date.People who just love commercial property often attempt to schedule tenant move in’s in such a way the property will almost always be earning money. Although move around in dates tend to be negotiated once the lease is signed, sometimes tenants don't relocate as scheduled. But by delaying the move around in date, a tenant might be costing you money, particularly if area of the tenant’s rent originates from profits they make by operating their business.
To avoid this from occurring, you can put a provision inside the lease that imposes a charge or even a penalty if the tenant does not move in after they promised that they would. This could make certain you don't lose negligence the rent based on their profits if they're not prompt about moving into the commercial property that they are renting of your stuff.
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