What Is A Leasing Plan?

Comments(2)

• 
  KyleGatton6th June, 2004

  It needs to be personalized, but essentially they are looking for the terms and amounts. That will be dependant on the type of property and what your role will be with managing it. Such as a NNN(triple net) or maintenance only etc etc.
  
  This is something you will need a lawyer to do for you as one wrong loophole and it could cost you a fortune. There are leases available on the web, but they are general, and will not go into the detail you will need for a management contract. I cannot tell you how much it would cost as I dont know what type of property, how detailed your role will be or your lawyers rates.
  
  Kyle

• 
  active_re_investor6th June, 2004

  As this is homework you do not need a lawyer.
  
  The idea (as already noted) is a plan for how the building will be leased over a 5 year period. Maintenance, taxes, insurance, upgrades, special costs from the city or other agencies and all the other things that will impact the building need to be consider.
  
  Will there be rent reviews between the start and the 5 years? If not, indicate that you have considered this by stating that the term is fixed with no rent reviews. If the property is retail so you want to offer a lower base lease and then participate in the gross revenue? Normally assumes that the landlord will be doing things to promote foot traffic (think shopping mall).
  
  Any special circumstances?
  
  Will you allow improvement if the tenant pays? Normally yes. What condition should the unit be in when the lease expires? Will the unit be brought back to the original standard? What about improvements that are only useful to the present business type? Do they come out or do they pass to the landlord?
  
  Signage on the outside. What is legal and allowed? Who pays? Can you still rent the roof to a cell company without the consent of the tenant?
  
  Deposits and how they will be handled
  
  Payment terms? Monthly, quarterly in advance?
  
  Is there any option to renew? If so, what are the term? How many options (2 options to renew for 5 more years each for example)?
  
  Can the lease be assigned? If we assume this is the normal case what are your rights to review and reject a tenant that does not meet the standards you set for credit?
  
  Oh, ask for some commercial leases and see what they say.
  
  John
  [addsig]