Aligning expectations with tenants

Is tenant selection needed? Do we want every tenant?

The answer is yes. And no. Yes, tenant selection is needed, and no, we don’t want every tenant that might want to lease one of our buildings.

The relationship between landlord and tenant is a long term one. In our business it averages 9 years. During the term of that relationship we want to have a productive and profitable relationship with the tenant - for both parties. We want to provide a facility that meets the needs of the potential tenant, whilst at the same time having a tenant who respects our building (which is a major asset) and meets their obligations.

Before we even start the relationship, it's important that the building is right for the tenant, and the tenant is the right fit with the landlord. It's not just about installing a tenant in a building and collecting the rent. It’s a business relationship, and both parties need to understand their obligations and rights. During the term of the relationship there will be expectations from both sides. These are, in legalese, set out in the lease document. But often those obligations and expectations are glossed over in the haste to get a signature on paper. As the saying goes “marry in haste, repent at leisure”.

For these reasons we insist that potential tenants are qualified early in the process. It’s a two way process. Not only must the building meet the needs of the potential tenant, but the potential tenant must understand the expectations of the landlord. Without both these factors there is the potential for a strained future relationship.

Which means that communication from the outset is essential, and the expectations of both parties are aligned.