Sale/Leasebacks – How to Make the Shift from Landlord to Tenant
You have always been a good property owner. You maintained it well and kept your excess space fully leased, so it sold faster than you expected. But wait a minute — finding a new home is a lot harder than you thought it would be. In fact, it’s not looking like you’re going to be moved out in time for the sale closing.
Don’t worry. The new owner will likely let you stay (forever if you want), assuming you are willing to pay rent.
Now that the tables are turned, though, you must realize you will no longer be the landlord. You are now a commercial tenant. Keeping this in mind, it is important to understand all of the terms of your lease or you might find yourself with no roof over your head.
Fortunately, you know the ins and outs of what a good tenant is, so all you need to do is reflect back on the days when you were the landlord. How did you want your tenants to act? Now, take your answers to that question and make them a reality.
Here are a few quick tips on how to be a good commercial tenant.
Pay your rent
First and foremost, you need to pay your rent (on time). If you can’t make payments on time, let your landlord know, and be well aware that you will likely have to pay a penalty fee. If you don’t pay your rent on time, this is a good indicator to your landlord that he or she may need, take additional steps to enforce the lease, with even some seemingly minor infractions, the contract might be terminated.
Understand your contract
Want to be a good tenant? Then read through the entirety of your contract. It will clearly outline how long a lease you are agreeing to, as well as any other important tidbits of information, such as whether or not you can do minor remodeling, change out light fixtures, and so forth.
Protect your Security Deposit.
Speak with the landlord beforehand and ask him or her exactly how you can avoid losing it. Take photos and video of the property on occupancy and notify the landlord of any damage or repair. Keep in mind that if you make any type of changes to the premises without approval, this will likely cause you to lose your deposit.
You Might Have to Pay Additional Rent
Commercial leases may come with significant Additional Rent, including the responsibility of paying property taxes, maintenance, or insurance. You may not have to pay all of them, but you will likely share them with your landlord.
Make sure to maintain commercial insurance
Almost all commercial properties will require the renter to maintain a comprehensive general liability policy. If you are occupying a commercial space and also conducting business out of it, you will need a more comprehensive insurance policy.
Being a good commercial tenant is common sense. Pay your rent and abide by your contract — make sure to read through it first — and your experience as a tenant will be pleasantly uneventful.
Contact us to get more information on selling your commercial property fast!