Commercial Lease Tenant Process & Due Diligence Plan

1. Initial Inquiry & Property Tour

   • Tenant expresses interest in leasing space.
   • Schedule a property tour to review the space and its suitability for tenant’s needs.
   • Discuss basic lease terms (rent, lease length, utilities, etc.).

2. Tenant Application & Documentation

   • Tenant submits an application with necessary documents: business license, financial records, personal references, and credit history.
   • Landlord reviews the application and documents to assess tenant qualifications.

3. Due Diligence by Tenant

   • Site Assessment: Tenant evaluates the space’s suitability for their business, including reviewing floor plans, accessibility, zoning, parking, and utilities.
   • Lease Review: Tenant reviews the proposed lease terms, including rent, maintenance responsibilities, security deposit, and lease duration. Consider consulting with a lawyer.
   • Environmental or Structural Inspections: If needed, tenant arranges for inspections to check for issues like mold, asbestos, or structural concerns.
   • Permits and Zoning: Tenant verifies that the property is zoned appropriately for their intended use and obtains any necessary permits or licenses. This might include signage, building permits, or health/safety permits depending on the business.  Hartford Zoning & Landuse

4. Lease Negotiation & Agreement

   • Tenant and landlord negotiate terms of the lease agreement.
   • Key terms include rent amount, lease length, security deposit, maintenance responsibilities, tenant improvements, and renewal options.
   • Both parties review and sign the lease.

 5. Insurance & Compliance

• • Tenant secures appropriate business insurance, including liability, property, and any other required coverage.
  • Ensure compliance with building codes, fire codes, and local ordinances.

6. Tenant Improvements & Permits

• • Tenant applies for necessary permits to make any alterations or improvements to the space (e.g., construction, signage, electrical work).
  • Tenant works with contractors and submits plans for approval by the landlord and local authorities.
  • Upon approval, tenant completes improvements based on the agreed-upon schedule and budget.

7. Move-In & Occupancy

• • After lease signing and permit approvals, tenant can move in and set up the space for business operations.
  • A final walkthrough with the landlord ensures everything is in place and ready for occupancy.

8. Ongoing Maintenance & Lease Obligations

• • Tenant adheres to all lease obligations, including rent payments, maintenance, and compliance with building policies.
  • Regular communication with the landlord ensures the space remains in good condition throughout the lease term.

This simple process ensures both tenant and landlord are aligned and that the space is ready for business operations while maintaining compliance with all local regulations.