The best kinds of tenant improvements are those that not only make the place look better and the tenants happier, but improve your income thereby increasing your ROI. These improvements can be expensive and time consuming, but in the long run, if things improve, they are really worth your time and money.
But are there ways to make tenant improvements meet both needs? Absolutely! In fact, here are several tips that can ease the path of property improvement.
1. Do your own homework. Take the time to determine what changes need to be made and what is the priority for each one. Talk to those who will be affected and learn when the best timeline would be.
2. Stay involved in the planning process. Make sure you understand the blueprints and design plans so that you can fully understand the changes that will be made.
3. Make sure the lease ensures that all parties involved get the best possible deal. Take the time to study the lease to make sure the proposed improvements are a fair deal and that it provides the right rent for you and that the tenant allowance is realistic.
4. Walk through the space with your contractor and make sure you understand the scope of the work and all the details before signing any documents. As long as changes are made after the documents are signed, it will cost you time and often more money.
5. Be flexible. While on the tour, be open to ideas and alternatives in materials or use of the spaces.
6. Think both now and in the future regarding your lease. If you are considering a long list of tenant improvements, it is possible to space them out over several years, allowing you to recoup some of your investment sooner rather than later.
7. If you are new to the tenant improvement process, make sure you understand the zoning regulations and that the contractor you work with knows that you expect them to be followed.
8. Be honest with your budget. If your contractor understands that adding a multitude of extras won’t happen due to budget constraints, they will be less likely to push you toward something that cannot be accomplished.
Tenant improvements don’t have to be the stuff that nightmares are made of! Due diligence and patience will go a long way in simplifying the process. Talk to your local contractors to learn more about how to make this process easier and more efficient.
