When you manage a commercial property, part of the management process will involve the optimisation of the tenancy mix and the leases.
Leases form the backbone of the income profile for the property and protect the landlord from excessive risk and volatility with tenants relocating or vacating.
That being said, the leases require a certain type of management process so that the targets of the landlord are achievable.
Here are some of the key factors to address or monitor as part of this management process:

1. The payment of rentals and other monies under the terms of the lease should be accurately invoiced and monitored.
   In difficult times it is not unusual for arrears problems to arise when tenants feel the strain of operating their businesses.
   
2. When any matters of arrears occur from the lease occupancy, they should be acted on quickly and in accordance with the terms of the lease.
   Arrears would typically occur with matters of rental payments, outgoings payments, and any other monies described in the lease documentation.
   Given that every lease document will contain specific conditions of performance for the tenant and the landlord, it is just so important that each lease is checked and assessed for the special terms and conditions that must be satisfied.
   In a property of multiple tenants, do not expect the lease documentation to be similar between tenancies.
   Read and interpret every lease document.
   
3. During the term of the lease, rent reviews will apply to the tenant and the premises.
   The implementation of the rent reviews will involve set dates and response criteria.
   A rent review cannot normally be implemented by the property manager without the consultation firstly being made with the landlord.
   The key issue here is to be prepared for the upcoming rent review and to have all the facts regards existing market rentals in the local area.
   Inspect other properties so you know exactly what they are like and how they compare to your property.
   
4. When tenancies get towards the end of the lease term, it is possible that they will have some form of option to renew for a longer lease term.
   This option will always be outlined in the lease as will the dates that apply to the renewal process.
   It is appropriate that the property manager and or landlord monitor the upcoming critical dates that apply to the renewal process.
   
5. If a tenant is to vacate premises at the end of the lease term, it is likely that they will have a make good requirement under the terms of the lease.
   In such circumstances, the tenant will be required to return the premises to particular levels of presentation and layout.
   This is again another reason to completely understand the lease documentation for each and every tenant.
   
6. When a tenant pays rental as part of occupancy, it is highly likely that other monies will be payable and most particularly in the categories of outgoings.
   The definition of outgoings will be displayed in the lease.
   Any payments that the tenant is required to make within this category should be accurately collated and reconciled.
   As with some of the items mentioned earlier, this outgoings category will have critical dates that apply to the charging and reconciliation process.
   Make sure that you comply as nominated in the lease.
   

One of the best ways to get to understand leasing and property management strategies is to read as many leases as possible.
This will alert you to the common terms and conditions that can apply in any lease negotiation relating to commercial or retail property.
It should also be noted that laws and local legislation can apply to the leasing process, so take the necessary steps to ensure that you are fully briefed in these factors.