The tenure schedule is the tool of choice for a property manager or lease administrator in a commercial or retail real estate investment. It is the lease schedule that will keep the property manager updated on upcoming events and dates.
You will often find that the lease schedule is out of date, so if someone hands you such a document, treat it with the caution it deserves and review it completely before acting on the information contained in it.
So let’s say you have a great holding schedule that you know is totally accurate. I get a lot of questions about what I would like to see in a tenure schedule. These are my top priorities:
- Details of tenant name, lease and full emergency contact details
- Lease identifier or suite reference from the property plan
- The area of the tenancy in m2 or ft2 (depending on your unit of measure)
- The % of the tenant area to the net leasable area of the building
- Rent $ per year, per month, and per unit of measure (m2 or ft2)
- Lease start date
- Rental start date
- Lease End Date
- lease term
- Lease Option Term
- Anniversary dates and reminders for lease reviews, options, expirations, renewals, renewals, and good obligations
- Exit expenses for each tenant depending on the area and the monthly charge
- Outgoing budget for the building
- Total property expense recoveries in currency and %
- Types of expenses receivable from tenants
- Renter’s Insurance Obligations
- Details of rental security or bonds held
- Provision for critical dates related to any material terms or conditions of the lease
- Detail of the maintenance obligation of the lessees
This list is not finite and you can add your own additional priorities; however, I would make sure it is completely correct and maintain it to the highest level of accuracy. When you do this, you can be aware of upcoming major events that will affect the occupancy or rental of the property.
While you can purchase ‘out of the box’ software programs that display this information above, that can be quite expensive for commercial and retail property managers first entering this type of property. The alternative is to create some simple spreadsheet that contains the data; Saying that, it’s essential that great care be taken to maintain the spreadsheet you create. Any mistake in the rental schedule can destroy your landlord, your business, your tenant, your reputation, and property. Precision is paramount.