Have you ever run across language in a lease that read more like a word problem from math class than a legal document? Perhaps it sounded something like this…
“Your Rent Commencement Date is the later of the store open date and 120 days after the earlier of the delivery date, date the Landlord completes the work and when all of the permits were issued. If the date above is later than January 1, the Rent Commencement Date is February 24”.
We’ve certainly all seen convoluted lease language that fails to capture the critical information needed to avoid situations like:
- Not knowing the rent commencement date
- Worrying about assuming an existing lease and taking over where the last tenant left off
- Relying on the previous tenant’s incomplete records
- Missing scheduled rent increases
- Having to pay late fees or shortfalls
In reality, most lease managers are doing a pretty good job of tracking critical dates and deadlines. So the real question becomes, “What are you doing with those dates once you have them?”
At Property Works, we encourage our clients to “memorialize” important dates by sending rent commencement agreements and acknowledgement letters that clearly outline items like rent commencement dates, original expirations and option deadlines. To be considered binding, the documents must be signed by both the landlord and tenant. Even if the lease doesn’t legally require these documents, we still find it to be an invaluable record-keeping exercise, especially when you’re not the original tenant on the lease.
If you’re a Property Works client, your relationship manager can provide a template Rent Commencement Agreement for your use. Best of all, this information can easily be tracked in our proprietary lease management software application, where summary reports are just a click away. And when full-service clients integrate new portfolios, our relationship managers will handle the legwork of obtaining and uploading missing documentation.
By remaining in control of your critical dates and deadlines, you can potentially save weeks of staff work over the course of the lease. It also will equip you with the information needed to more accurately project future expenses and revenue.
About Property Works
Established in 1996, Property Works provides lease management services to multi-unit retail, restaurant and commercial operators with 30 to more than 1,000 locations. Utilizing its propitiatory software platform and/or full-service lease management capabilities, the Property Works team helps clients: track critical dates and deadlines; redeploy valuable resources; make data-driven decisions; and boost the bottom line. For more information or to schedule a demo, visit PropertyWorks.com or call 678.795.3830.