Tips for Your Next Tenant Improvement Project
Expanding and improving are a part of life. Without it things become stagnant and ultimately useless. Consequentially, when one owns rental property it is vital that they take time to not just maintain what they have but to make updates and improvements in a timely fashion so that the property retains its value and remains to be a place where people want to be.
It is with those goals- retention and desirability – in mind, that property owners need to plan for tenant improvements (TI) every few years. These improvements need not be extensive, just so long as they are consistent and not skimped on by using poor work practices or shoddy materials. Consequently, it is vital that one work with a construction company that is dedicated to providing the best tenant improvement available.
In addition to the upgrades themselves, it is important to take time to meet with your tenants and learn what type of changes need to be made. This is especially true in office space updates as many business owners may have specific needs that could work to make your property more valuable and appealing to future tenants. These changes may be as basic as the type of flooring to roofing that is in disrepair – just be willing to listen so that you can be sure to make the most of your investment.
As part of the TI process, you should also take time to negotiate the right to amortize additional TI monies into the rent, so that any extra expenses poured into tenant improvements can be covered. Sure, you may opt to absorb the cost yourself, but having an option is always a good thing.
In addition to the upgrades themselves, it is important that you keep a few other elements in mind as you begin to move forward with tenant improvements. These include:
- Will the TI be both rentable and useable? Keep in mind that upgrades need to meet space requirements – both common areas and useable space – in order to be worth the investment to a renter.
- What types of upgrades are planned? Be sure your TI budget includes materials, repainting walls, doors, HVAC, permits, project management and any other aspects of the TI.
- What is the timeline? In many cases, you will need to have a space empty in order to do tenant improvements. Be sure to take the loss of income into the cost. Also, ensure you have a solid completion date from the TI company.
Tenant improvements are a part of property ownership, but they don’t have to be viewed negatively. Choose a local construction team with a good reputation in the TI field and you can know that your property will be properly handled and your renters will be pleased. Don’t put things off. Make plans now to give your properties a new look.
Many websites provide additional information on the topic of tenant improvements. One such site worth visiting is http://www.buildingmaintenancemanagement.com/update-your-apartments-for-more-tenants-twin-cities/
Janet Slagell independently authors articles for WebDrafter.com, Inc. for search engine marketing. The views and opinions expressed in this article are those solely of the author, and not of any other person, company, or organization. No guarantee or warranty, express or implied, is made regarding the accuracy, fitness, or use of the content herein.