All Forum Posts by: Tamas Z.

Hey everyone,

I've got a commercial property, and a tenant is looking to sell his business, which would basically mean the business (a store) stays there, but is under a new owner. The lease is with the business entity.

Is there anything I need to be aware of, or things I have rights to? Like for example, what if the new owner wouldn't normally meet screening criteria?

My understanding is that the property owner needs a written document about the transition happening.

Is there any standard procedure (e.g. I can screen them as if they were a new applicant before it's allowed to go through) I can do here, to stay safe? Or is that kind of thing stipulated entirely in the existing lease, with no overarching regulation? (I'm about to go double check the lease, but wanted to put a feeler out there)

Also, since I haven't done it before (in this special case or just in general): When screening a new commercial tenant, can all the same tenant screening services used for regular rentals (e.g. mysmartmove) be used, or does it have to be a special thing specifically for commercial property, even if the business that's applying doesn't have a history, and is a new business?

Thanks much!

Yup, totally agreed about the separate meters having the best fairness and correctness. Thanks for confirming that's the standard way to go.

It's definitely an NNN lease.

cheers!

*bump* do let me know if this is in the wrong place. :)

Hello all,

I'm new to this field, and have just one commercial property. There is a lot of learning to be done, and I'm looking forward to learning from everyone!

My basic question is, what are the recommended strategies for dealing with situations where the regular triple-net "pay prorated to rentable space area" isn't actually the fair split.

Specifically, I've got two roughly-equal-sized spaces, but one of them is a business that contributes the vast majority of the electrical bill, and having them split it evenly with the other tenant, in standard triple-net fashion, doesn't seem right.

One option I've been considering is to just have the meter split, so each of the units just gets their own bill, and then the electric bill is just no longer part of the operational costs equation. Is that a common, or even recommended practice? What are the pitfalls? It might be a really expensive thing to do... does the cost of making that change officially fall on the tenants, or the landlord? I assume it's the landlord, but if it's generally pretty affordable, I don't mind doing it, to avoid the headaches.

All the best, thanks for your time! Really looking forward to learning more!