How can you approve tenant alterations to commercial property?

1 Create a tenant alteration policy

A tenant alteration policy is an essential component of your lease agreement, setting out the rules and guidelines for what types of alterations are allowed, prohibited, and require your approval. This policy should include aspects such as the purpose and scope of the alterations, standards and specifications for materials and workmanship, permits and approvals required from relevant authorities, liability and insurance obligations, timeline and budget for the alterations, and restoration and maintenance responsibilities of the tenant. By having a tenant alteration policy in place, you can protect your property rights, avoid disputes, and ensure compliance with building codes and regulations.

2 Review tenant alteration requests

When a tenant submits a request for an alteration, you should review it carefully and promptly. You should take into account the impact of the alteration on the structural integrity, safety, and appearance of your property, its compatibility with existing systems and features, the benefits and risks to your property value and marketability, any potential disruption or inconvenience for other tenants and neighbors, as well as the legal and contractual implications for your lease terms and obligations. You should communicate your decision to the tenant in writing, outlining any conditions or requirements that you may have for the alteration.

3 Document and inspect the completed work

Once the tenant completes the alteration, you should inspect the work and verify that it meets your standards and expectations. It is important to document the alteration and update your records accordingly. You should obtain a copy of the final plans, drawings, and specifications of the alteration, as well as a copy of the permits, approvals, and certificates of occupancy. Additionally, you should obtain a copy of the warranties, guarantees, and invoices for the materials and labor used for the alteration. Furthermore, take photos or videos of the before and after conditions of the altered space and conduct a walk-through inspection with the tenant to note any defects or issues that need to be resolved. Finally, sign a completion certificate or acknowledgment form with the tenant. Documenting and inspecting the completed work can help ensure quality, compliance, and accountability for tenant alterations.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?