Vacating Processes in Commercial Premises

When it comes to managing and leasing commercial or retail property premises, you will frequently be handling the issues of vacating tenants. Most importantly vacating tenants need to be controlled as they leave the premises and they need to comply with the terms and conditions of the lease.

When the lease comes to an end, the tenants should have vacated the premises and complied with all the make good conditions within the lease documentation. It is incorrect for the tenant to continue to make good the premises after the termination of lease; the last day of the lease term is that day where the property handover is to occur and all conditions of lease compliance should have been satisfied.

Given that many commercial and retail tenants occupy premises for some years, the exit procedures for vacating premises should be quite specific and detailed. A record of the property conditions before occupancy will help you to identify the requirements of make good.

Here are some other ideas that you can use with vacating tenants:

1. In the three or four months leading up to lease termination, ensure that the tenant is well aware of the last day of occupancy and the day that you require the premises to be handed over.
2. Look through the lease documentation to identify any special conditions to be satisfied at lease termination.
3. Understand the difference between the base building and the tenants fit out. In normal circumstances the tenant will be required to remove their fit out unless some prior agreement has been reached with the landlord.
4. The tenants fit out will be all those items including partitions, electrical modifications, air conditioning modifications, lighting modifications, painting and carpet replacement. Also identify any special communications or computer networking cabling that will need to be removed as part of the lease termination.
5. The tenancy occupancy records should contain approved plans and drawings of the tenancy works implemented over the lease term. Essentially these works will need to be removed and the landlords premises restored.
6. Always read the lease document prior to the expiry of the lease allowing plenty of time for the implementation of vacancy strategies. When you know that the tenant is vacating on a certain date, you can contact other tenants who may be interested in occupying the premises.
7. When all the vacancy issues have been satisfied, then you can consider the release of any bond or guarantees that may be held.

When it comes to removing tenants from a lease occupancy, it is just a matter of following the terms and conditions of the lease in a timely and accurate way. Keep records of your progress and actions taken in case you have to challenge any matters in a later legal action.

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