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If you’re trying to attract new tenants to your residential or commercial property, you can get more attention by upgrading the space. There are some construction projects that you might start independently, like upgrading the lobby and any common areas. For individual units and commercial spaces, you may be better off negotiating with individual tenants to meet their needs. You can do this by providing tenant improvements, upgrades tailored to the tenant that are included in the lease agreement.

The Tenant Improvement Process

1. Negotiation

First, meet with your prospective tenant to discuss what improvements they need. They may ask for anything from cosmetic updates, to appliance upgrades, to major repairs and renovations. Get a rough estimate from a builder about what each construction project will cost, and factor that in when you determine the price and length of the lease. Negotiate with your tenant about the scope of the work and write your obligations into the lease.

2. Planning & Construction

construction projectsIf you’re asked to change minor fixtures like cupboard handles, faucets, or small appliances, you may be able to make these changes yourself. For more complex construction projects or large buildings, you’ll need a licensed construction company to make changes. They’ll help design the project, choose materials, provide a firmer cost estimate, and complete the changes. This can include new flooring, cabinetry, windows, adding or tearing out walls, finishing unfinished units, installing new utilities and fixtures, and anything else the building needs to fit your tenant’s needs.

3. Inspection

First, you’ll need a certificate of occupancy, which certifies that local authorities and code enforcement have inspected the space and agree it meets legal requirements. Next, you’ll need to have your tenant perform a walkthrough. Together, you’ll go down a punch list, or a list of the tenant improvements written into your contract, and verify that each one has been completed. After this, your tenant should make their final payment and occupy the unit.

 

If you’re planning a construction project to improve your tenant building, contact Impact Construction Services in Aurora, CO. Serving the greater Denver metro area, they pride themselves on using durable, energy-efficient materials that will save you money on repairs and electrical bills, as well as taking on large, high-profile projects. To get started, call (720) 299-5536 or visit their website.

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