Best Practices for Managing Leases & Critical Dates in Leasecake

Leasecake University

December 2, 2024

Key Takeaways

Understand Key Lease Dates:

• Lease Commencement Date: The date when the rights and obligations of the lease begin. It's often confused with the lease signing date but may depend on contingencies like the issuance of a certificate of occupancy.

• Rent Commencement Date: This is the date when rent starts accruing. It may differ from the lease commencement date, especially if there's a build-out period where rent isn’t required.

• Lease Expiration Date: Clearly understand when the lease ends. Pay attention to clauses that may extend the lease to the last day of the month or that calculate the term based on the rent commencement date.

Track and Verify Dates:

• Regularly review critical dates, especially when dealing with complex lease language. Make sure to verify any dates provided by the landlord, particularly in commencement date memorandums or estoppels, as errors can occur.

• Use Custom Fields and Reminders: Utilize Leasecake to track custom events such as permit issuances, certificate of occupancy dates, and rent commencement dates. Set reminders to ensure you never miss a critical date.

Lease Expiration and Renewal:

• Keep an eye on lease expiration dates and renewal windows. Make sure to act within the specified timeframe to avoid missing a renewal option or ending the lease prematurely.

• Ensure that renewal agreements accurately reflect remaining renewal options and that the expiration dates match your expectations.

Tenant Improvement (TI) Allowance:

• Track Deadlines: Be aware of deadlines for submitting documentation to receive your TI allowance. Missing these deadlines can result in lost reimbursement opportunities.

• Verify and Follow Up: After submitting documentation for TI allowances, track when the landlord is supposed to make the payment. Consider using custom events or tasks to manage this process and ensure follow-up.

Communication with the Landlord:

• When provided with documents like estoppels, double-check that all dates, including the expiration date, align with the lease. Landlords may not always be required to sign these, but verifying them is crucial.

Disclaimer

The information provided is for general guidance and should not be taken as legal advice. Lease agreements can vary, and we recommend consulting with a legal professional for advice specific to your situation.