Commercial Contractor - How to prevent common, but costly, tenant mistakes

Every developer and general contractor must be mindful of circumstances in which their tenants could cost them significant amounts of money. Tenant mistakes can often be extremely expensive when the developer or general contractor needs to cope with the financial repercussions of the mistakes. Common tenant mistakes that can cost you a fair amount of money include building renovation, tenant improvements, injury or any other causes for liability about the premises, tenant cash flow problems, tenants that do not move around in promptly, and tenants who misrepresent themselves during lease negotiations.

Discussed below are some of those common tenant mistakes and ways that developers and contractors can avoid 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 for the property without permission or approval from your owner of the house. In commercial construction projects, developers and construction management generally don't want tenants selection in regards to the construction of the property without conferring with them first. The reason for it is because tenants may add or renovate the home in a way that can lower the need for the property.

This error may be prevented quickly, however, by reminding tenants once they sign the lease which they cannot make changes for the property without asking permission from construction management and from your owners of the house. It's also advisable to consult with your attorney and include in the lease the provision that when the tenant does decide to make alterations, they will be responsible for paying for the job and then for any financial loss suffered as a result of the modifications. This may make certain you are legally protected from the expense connected with tenants who make an unauthorized building renovation or tenant improvements.



Injuries around the property along with other factors behind liability.In some instances, if someone else is injured on the commercial property, whether or not they certainly are a tenant, you could wind up suffering the effects. As an example, if a customer of the tenant gets hurt around the premises, set up tenant caused the damage, the owner or property owner might be responsible for the damages from the injury. Of course, if a tenant is hurt, especially because of a construction issue or throughout the commercial construction process, then your contractor or construction management could be held accountable for the damages in the injuries too.

Not honoring the move in date.People who just love commercial property often try to schedule tenant move in’s so the property will always be earning money. Although relocate dates are often negotiated if the lease is signed, sometimes tenants usually do not move around in as scheduled. But by delaying the move in date, a tenant might be costing you money, particularly if area of the tenant’s rent originates from profits they create by operating their business.

To prevent this from occurring, you can put a provision in the lease that imposes a fee or a penalty when the tenant doesn't relocate after they promised they would. This could ensure that you usually do not lose the part of the rent based on their profits if they are not prompt about getting into the commercial property that they're renting by you.

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