Leasehold improvement refers to the enhancement of a leasing property through the help of a department that controls it. Landlords and tenants are using leasehold improvement to improve the looks of the properties without breaking the bank.
Better value
Leasehold improvement is a way for landlords to accommodate the tenant’s needs and to increase the property’s value. Landlords and property managers often oversee these improvements when they see a chance. For example, someone leased a unit in a building and he or she wants to turn it into a computer shop. The landlord or the property manager has the power to put shelves and glass doors in the building to please the tenants and of course to engage others to rent a unit too.
Payment mode
There are many ways in which the landlord and tenant can pay off the leasehold improvement:
- Tenant improvement allowance (TIA) – This allowance is the allotted budget improvements of the landlord given to the tenant. If the tenant already exceeds the allowance, he will be the one who shall cover the rest of the expenses.
- Discounts – The landlord may also give the tenant a discount rate or a month off in payment so that the tenant will have the power to save money to redecorate the whole unit. The tenant will oversee the process.
- Building standard allowance – This refers to a collection of selection where the tenant must choose which one will the landlord will be paying for. But in this case, the landlord will oversee the project and sometimes the tenant will not like the finish product.
In the end…
Improving the rental space can be beneficial to both parties. The landlord and the tenant must find a compromise if they wish to get the whole property done. Finding what works for both parties can lead to improvement that everyone can truly enjoy.
Image source: http://www.persquare.com.ph/for-sale/townhouse-calabarzon-region-4-a-cavite-imus/sophie-townhouse-for-sale-at-lancaster-new-city-in-imus-cavite_15084 – Green Circle Realty
