Tips for Negotiating a Tenant Improvement Allowance

Posted on May 24, 2022 by bafcorp20

Negotiating a tenant improvement allowance takes some finesse. It is more than just numbers based on rentable square footage. If you are preparing for a tenant improvement allowance negotiation, there are some behind-the-scenes facts you should explore in order to get a fair and deserving TI allowance for your commercial build-to-suit renovation or business remodel.

Continue reading to learn some important tips for negotiating a tenant improvement allowance, including where to get trusted TI commercial renovation in Central Indiana.

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The Small Details Matter in a TI Agreement

In many cases, it is the smallest details that matter the most in a tenant allowance agreement. Landlords are seasoned when it comes to these kinds of negotiations, so it is important to prepare yourself with the right knowledge; knowledge that protects your right to a fair and honest tenant improvement allowance deal. Look further than just square footage and rent data. Instead, equip yourself with facts about the real economics of the transaction.

Beware of Turnkey Agreements

Most tenants will look at a turnkey tenant improvement agreement as a great deal. But you should not be easily fooled by these offerings. Flat tenant improvement amounts that include a turnkey clause are always in favor of the landlord or property management company. They typically offer these kinds of flat tenant improvement allowances to save themselves money. This is another element of tenant improvement allowance negotiations you need to be aware of: construction control.

Control Over the Construction

Often times, landlords or property management companies aim to claim control over certain elements of the tenant improvement construction. By adding this privilege into their TI agreement, landlords can appointment themselves as construction manager and hire their own builders and contractors. This forces you to relinquish control over the quality of materials used, the competency of the labor, potential labor markups, and more. In the end, tenants are given allowances that do not meet their expectations.

Measure Correctly

Although numbers are the only thing relevant in a tenant improvement allowance negotiation, they are critical to the process, nonetheless. The numbers you want to focus on during the process is the size and square footage of your rentable space. Not only do these numbers have a significant impact on your tenant improvement amount, but also on your rent. Do not fall victim to having your space incorrectly assessed and measured. In some cases, commercial spaces are measured to have more common space than they actually have, which gives a tenant more TI allowance, but causes them to pay more in rent.

Landlord Ulterior Motives

You’ve likely heard the classic economist’s rule, “there ain’t no such thing as a free lunch.” As for negotiating a tenant improvement allowance with a potential or future landlord, keep this old adage in mind. The landlord only cares about their bottom line, so everything they offer in a tenant improvement agreement is likely being balanced out somewhere else in their books. Common landlord tactics for this include higher rent, aggressive rent increase schedule, and stricter lease conditions.

Would you like some help getting the best deal for your tenant improvement allowance in Indiana? Choose BAF Corporation as your one-stop-shop for commercial space planning and tenant improvement construction in Indianapolis, Indiana.

Are You Looking for the Best Commercial Contractors in Indianapolis?

Posted on May 20, 2022 by bafcorp20

Look no further than BAF Corporation for all of your commercial construction and building needs in Indianapolis, Indiana. Continue below to learn more about us, including how to get in touch and why we are Central Indiana’s leading commercial general contracting company with an unwavering reputation for quality and respect.

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BAF Corporation is Your Trusted Indiana Commercial Builder

Here at BAF Corporation, we are a family-owned commercial construction and general contracting company that was founded on old fashioned values like integrity, quality, and respect. With BAF Corporation on the job, you can feel assured that your project is in the hands of honest, organized, and skilled professionals who are dedicated to delivering the highest standards of excellence.

We manage every element of your commercial build or remodel to ensure a streamlined construction process that meets all defined engineering and design specifications, procurement, schedules, and budgets. Being your single source of contact will reduce your administrative burden, while also ensuring clear and concise client-contractor communication, turnkey service, and custom-tailored results. With a strong commitment to attention to detail, proficiency, and client support, BAF Corporation has duly earned our track record of being a leader in commercial construction and design.

Setting the Bar Higher for Commercial Construction Work

There is a very practical reason why BAF Corporation continues to be a leading commercial general contracting firm in Central Indiana. Our commercial general contractors fully understand and support the importance of accountability, owner needs and expectations, budget adherence, and scheduling, for every building project, regardless of size or complexity. This professional resolve, combined with our extensive skill and proven track record, sets us apart from our industry contemporaries and competitors. We can offer real, workable solutions to maximize your investment and drive greater value.

We retain the latest technologies and innovative advancements, including access to premium resources, to accurately meet our client’s objectives and business performance goals. Furthermore, we maintain long-standing relationships with architects, designers, subcontractors, and suppliers, giving us a competitive advantage. We are the trusted and qualified commercial building contractors you want on your team.

How to Get in Touch

BAF Corporation encourages you to contact us at 317-253-0531 to learn more about our Indianapolis general contracting and construction services, including your options for getting started with a consultation. Our commercial contractors provide full-service general contracting and construction building services for commercial, corporate, and industrial industries in Indianapolis, Indiana and its surrounding districts.

Are you ready for us to help you with your upcoming build? Contact BAF Corporation at 317-253-0531 to speak with our esteemed commercial construction management teams about the commercial construction services we offer in Central Indiana.

How to Decide if You Can Afford to Remodel Your Business

Posted on March 4, 2022 by bafcorp20

When it comes time to seriously consider a commercial remodeling project, the key and communal question is, “can I afford a remodel right now?” If you are asking yourself whether or not you can fit a remodel into your current budget, you are not alone. For this reason, it is helpful for you to become more familiar on all that is required of you financially for your particular business remodeling goals. This will help you develop a rudimentary cost estimation, which will tell you if you can afford to remodel or not.

Continue reading to learn some considerations for achieving accurate cost foreseeability and budget analysis for a desired commercial business remodeling.

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Fitting a Remodel into Your Company’s Budget

Financing

When you are sweating the upfront investment of a commercial office or business remodel, don’t. Many commercial contracting companies are willing to offer flexible financing packages and incentives that help business owners fit a remodel into the budget and ultimately, add value to their property. Whether interior or exterior, commercial construction financing can be the answer to your business remodel or renovation concerns. Take note that some commercial general contractors do not offer financing options. But there are still other types of financing options that may be available to you.

Loans and Refinancing

Banks are eager to help business owners succeed. Many will agree to provide a business equity loan for commercial remodeling purposes, especially if your business already has good credit and credit history. And don’t forget about property owner equity lines of credit, business equity loans, second mortgages, and even commercial contractor loans.

Talk to your banker to learn which, if any, loan options you qualify for, or your options for refinancing your business’s credit agreement. They will be able to examine your financial portfolio and make full-informed recommendations with your best interests in mind. You may even want to consider a separate company for a business equity loan or lines of credit.

Tenant Improvement Allowances

Tenant remodels and leasehold improvements are much different from conventional commercial construction projects since they are intended to be an investment for a business owner. Tenant improvement (TI) allowances are sums of money made available to tenants by the landlord to cover some of the cost of needed remodeling work. Such allowances are usually stated on a per-square-foot basis, and most common for new spaces since more renovations are needed to finish the project. Check with your commercial management company or landlord to see if you have TI benefits.

Seek Out Professional Advice From a Commercial General Contractor

Talk to an experienced commercial construction company in Indiana to determine how to plan and organize your remodeling budget. An Indianapolis commercial general contracting team will be able to help you find affordable alternatives and cost-cutting advice that will get you the upgrade your business needs!

Are you looking for superior commercial remodeling in Indy, but you are not sure where to begin? Contact BAF Corporation at 317-253-0531 for superior commercial general contracting services in Indianapolis, Indiana. We work with clients all throughout the state.

Tips on Running Commercial Tenant Credit Checks

Posted on February 18, 2022 by bafcorp20

In the past, we’ve discussed some effective strategies landlords can rely on to avoid nightmare tenants. One such strategy that deserves a little more attention is commercial tenant credit checking. Running a tenant credit scan is generally one of the last steps in the screening process, but it is no less critical.

Continue reading to learn some valuable tips on running commercial tenant credit checks to better protect yourself against tenancy fraud, unqualified applicants, late payments, and more.

Commercial Remodeling Tenant Improvement Indiana 317-253-0531

The Importance of Commercial Tenant Credit Checks

As a commercial landlord, your office building or strip mall is important, as it has a lot of earning potential. Not only do you want your available spaces leased as soon as possible and for as long as possible, but more importantly, you want good, dependable tenants. Commercial tenant credit checks can be the best armory against things like tenant fraud, rental loss, and poor application submissions. In fact, tenant credit scans are designed to specifically avoid and prevent these situations and more.

Tenant Credit Scans Can…

☑ Protect Against Tenant Fraud
☑ Verify Tenant Qualifications
☑ Increase Control for Timely Payments

Tenant credit checks will reveal a lot about an applicant’s payment history and habits, including income, assets, credit lines, financial delinquencies, excessive extensions of credit, defaulted payments, ordered restitution, tax penalties, and more. Basically, a tenant credit scan should tell you enough information to make an informed and secure decision on an applicant’s capabilities to pay their rent on time and without causing any trouble.

Tips for Running a Tenant Credit Scan

▶ Double check your information. When commencing a commercial tenant credit check, it is critical that you get their name and information correct. After all, you would want to ensure that you are running the credit scan on the right person. Avoid entering incorrect data about your applicant by making a copy of their photo identification, which can be a driver’s license, state ID, or passport. With their photo identification in hand, be sure to confirm with them their address, date of birth, and full name.

▶ Use an authorized credit reporting agency. There are thousands of credit scanning websites to choose from, but not all of them are created equal. Be sure you use a certified credit check screening service. Recommended agencies include Equifax, Experian, and TransUnion.

▶ Interpret credit report results sensibly. Credit report results can be confusing sometimes, especially if they involve international or legal matters. So, it is encouraged to hire a lawyer to help you understand what you’re looking at. Look for red flags, like financial delinquencies and history of non-payments. If the applicant provided incorrect data with the intention to conceal points on the report that could work against them, this is a red flag that they are not a wise choice as a tenant.

Are you a commercial landlord or tenant who wishes to improve the look, function, and overall success of your business? Contact BAF Corporation at 317-253-0531 to speak with an expert Indianapolis commercial general contractor about your options for tenant improvement remodeling and more. We serve clients in all industries and throughout all of Central Indiana.

3 Easy Options for an Open Concept Office Floor Plan

Posted on February 10, 2022 by bafcorp20

Does your commercial office lack the open-concept floor plan you’ve always wished for, but you aren’t in a position to move locations? Well, you might be happy to know that you don’t always have to move into a new building or lease a new space to get the open layout you so desire. In fact, you may be able to remodel your current office floor plan.

Before getting started, it is important to discuss your office remodeling ideas with a licensed commercial general contractor who can assist you in finding the proper renovation for your particular space. They can let you know if your commercial office space is a good candidate for open floor space renovations, which remodels or renovations are right for your property, and whether your lease includes a tenant improvement allowance.

Continue reading to learn some easy ways to give your existing commercial office space a more open-concept feel, plus who to trust in Central Indiana for superior commercial remodeling and TI work.

Indiana Commercial Office Remodeling 317-253-0531 — Indianapolis IN Commercial Office Remodeling 317-253-0531

Open Concept Tips for Commercial Offices

Looking for an easy and relatively quick way to transform your office into an open-concept floor layout? Perhaps one of these 3 options will suit your commercial remodeling needs!

Non-Load Bearing Walls

A commercial general contractor can point out which walls are load-bearing and which ones are not. The walls that are not load-bearing can be torn down in a strategic and artistic way to add more space to any room. Conjoining rooms by tearing down walls is an invasive remodeling project, but with professional assistance, it is generally easy and organized work.

It is important to use a professional commercial general contracting company in Indianapolis to tear down walls because they can accurately locate and work around gas pipes, electrical wires, load-bearing walls, and more. You want all your work to be up to code with the local municipality as well, which a licensed and certified commercial general contractor can guarantee.

Archways

If you are looking for a more open feel for your commercial office layout, but you dislike the idea of a full-o, invasive remodel, consider making small but stately adjustments, as these can make a big difference in appearance and fee, plus fit the budget nicely. Adding an archway above interior doors provides instant gratification because it gives off an illusion of more space. Additionally beneficial, construction for archways is pretty minimal and requires less drywall work and less labor time.

Accent Walls and Space Division

If construction, drywall work, and remodeling are nowhere near your budget, there are more cost-effective methods for creating the illusion of a more open floor plan for yourself and your staff. A popular, go-to interior design hack is to add an accent wall in certain areas of the office, particularly smaller, confined spaces or small rooms. This creates a feel of difference and division.

On the subject of floor plan division, dividing room space is another cost-effective interior design method that creates the feeling of more space. Try adding crown molding on the walls of one space to separate it from other areas of the office. This is inexpensive and does not take much time to install. All of these options can even be done on your own, which is even more cost-effective.

Are you looking for a qualified commercial general contractor to deliver a functional and appealing interior remodel within your TI allowance or office remodeling budget? Contact BAF Corporation at 317-253-0531 for superior commercial remodeling and tenant improvements in Indianapolis, Indiana. We serve clients all throughout the state.

Top Building Remodels That Will Entice New Commercial Tenants

Posted on January 28, 2022 by bafcorp20

When you own a multi-unit commercial building, tenancy is critical to your bottom line. The goal, after all, is to acquire and maintain full occupancy, year-round. If you are struggling to keep commercial tenants, some fresh and trending building features may help to attract new ones, even better ones.

Continue below to explore some of the most effective building remodels and additions to consider if you are trying to lure in new commercial tenants, plus who to trust in Central Indiana for superior commercial remodeling work.

Corporate Remodeling Indianapolis IN 317-253-0531

How to Attract New Commercial Tenants Through Building Renovation

Your building is great, but it can be better. This day and age, there are many different approaches to designing the modern office, warehouse, and more. Some of the most revered and proven building features sought out by commercial tenants include on-site fitness centers and spas, snack and dining options, outdoor spaces, natural lighting, wireless coverage, and when applicable, elevators.

On-Site Fitness Centers

It is suggested by many industry authorities that commercial tenants are more drawn toward leases that include access to a gym, fitness center, or health spa. Many people work out, while many others enjoy wellness experiences like saunas and tanning beds. By offering these or similar amenities, you may be able to attract a much larger pool of potential commercial tenants.

Dining Options

Providing easy access to snacks, refreshments, and food is a great way to entice new commercial tenants to sign a lease. Consider adding break rooms or small kitchenette areas within your commercial spaces, or building a whole food court, café, or cafeteria. Vending machines for beverages, coffee, lattes, espressos, and snacks are also enticing.

Outdoor Areas to Work and Gather

No one likes to be stuck inside an office or building all day, especially when it is really nice outside. It is proven that employees are more productive when they can access outdoor areas for work, breaks, meetings, collaborations, and more. This is enticing to business owners looking for a commercial space to lease.

Natural Lighting

Although a dimly-lit space can look cozy and romantic, it is not a compatible ambience for a team of working employees. Natural lighting provides healthy, bright light that is not distracting for employees and guests. You can achieve this by installing larger windows, skylights, and a more innovative interior lighting system.

Wireless Coverage

If you have a particularly large commercial building, the wireless coverage may be spotty in some areas. Tenants have complained about no reception and dropped calls while walking from one location of the building to the next. You can prevent or resolve this problem by installing a distributed antenna system (DAS), which can improve your wireless coverage throughout the building.

Elevators

If your commercial building is only one level, this feature isn’t for you. But for commercial-use buildings with more than one floor or level, one or more elevators is extremely attractive to tenants. For larger buildings with multiple levels and higher occupancy, adding in an adequate number of elevators can improve time efficiency for employees, visitors, and clients.

Are you looking for superior commercial remodeling in Indy, but you are not sure where to begin? Contact BAF Corporation at 317-253-0531 for superior commercial office construction in Indianapolis, Indiana. We work with clients all throughout the state.

How to Remove Painted Wallpaper

Posted on December 20, 2021 by bafcorp20

During the commercial renovation process, it is common to come across a painted wall that has wallpaper beneath its many layers. This is very common in older homes and buildings, partly due to the fact that wallpaper was more of a hassle to remove back then because the market lacked the innovative tools and products that we now have to ease the process. But for many property owners, especially multi-housing real estate developers and landlords, painting over wallpaper is still the more cost-effective and time-convenient option. The fact of the matter is, painting over old wallpaper really just adds to imminent work required down the line when it comes time to properly renovate.

If you are a new building owner or commercial tenant who needs to remove old wallpaper that’s been painted over, you are probably wondering how to manage the project efficiently. After all, time is money, and you are not prepared to waste either one as a business operator. But the ugly truth is, there is no secret method to removing painted wallpaper quickly. In all cases, it will take a lot more effort, time, and material than a standard wallpaper removal job. Furthermore, if you come to find several layers of paint, your best option might be to replace the drywall altogether.

Continue reading to learn the best practice for removing wallpaper that was painted over previously, and who to call when your commercial renovation undertaking is more than you thought you could handle!

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What You Need to Remove Old Wallpaper

Keep in mind that you may require new drywall installation if you find that there are several layers of paint on top of the wallpaper. If there are only a few layers of paint, you may be successful at removing it without having to replace the drywall. If you do not already know how to remove wallpaper, simply review the steps before getting started. What you will see is that it is a very similar process to removing painted wallpaper.

You will first need to gather all the necessary items, including:

➣ 3-in-1 Scraper Tool or Broad Knife
➣ Serrated Paper Scoring Tool
➣ Wallpaper Stripper Solution
➣ Wallpaper Removal Cloth
➣ Ladder or Step Stool
➣ Large Plastic Bucket
➣ 2 Gallons Warm Water
➣ Rubber Gloves
➣ Safety Goggles
➣ Drop Cloths or Tarps

Wallpaper Removal Guide for Painted Walls

Using medium pressure, score the outer layer on the wall with the paper scoring tool. Too much pressure can damage the wall so take your time on this part. You may also use a thick-bristled wire brush, or both. Choose the tool that you are more comfortable using and that produces the most results.

Once you have scored the paint, spray on your wallpaper stripper solution, focusing on small sections at a time. Then allow the solution to soak into the wall for a few minutes. Spraying too much solution on at once can damage the wall, so don’t be too generous with the spray bottle. If you do not wish to use a commercial wallpaper stripper solution, you can mix water, vinegar, and liquid fabric softener into a plastic spray bottle instead.

After the solution has soaked into the wall for a few minutes, grab your 3-in-1 scraper tool (available at any local hardware or home improvement store for a low cost), and start with the sharpest edge. Get underneath the painted wallpaper and work slowly to scrape it away. Scraping in alternate directions will help expedite the effects.

Expect this process to take several hours, or even days depending on the drywall or plaster used, the type of wallpaper adhesive, the square footage of the wall, the extent of paint on top of the wallpaper, and much more. After an abundant amount of dedication, patience, and effort, you will eventually get it all!

Hire a Professional for Commercial Painting and Drywall

Please remember that all wallpaper removal jobs will be different. There are countless factors that influence the process of removing wallpaper, especially painted-over wallpaper. Sometimes it is best to leave a tedious and complicated project to a licensed professional. An Indianapolis commercial drywall and painting contractor has the tools, resources, and training necessary to remove wallpaper, efficiently and without causing further damage.

In the case that your walls have been damaged by too many layers of paint or wallpaper, they can provide drywall installation and repair services too. If you want outstanding results at a great price, trust your Indiana commercial general contracting company for wallpaper and paint removal services.

Are you in over your head in DIY commercial renovations? Trust a pro for the best results. Contact BAF Corporation at 317-253-0531 when you need the most trusted and qualified commercial general contractors for painting and drywall service in Indianapolis, Indiana.

How to Attract More Tenants to Lease Your Rental Property

Posted on December 14, 2021 by bafcorp20

Commercial vacancy doesn’t do your bottom line any good. Anybody who owns a commercial building or rental property knows that the goal is to have that space leased out, always. If you are a commercial rental property owner who is struggling with drawing in high-quality tenants or long-term leases, you could use some new direction. Now that the end of the year is near, perhaps it is time to set your sights on increasing your commercial building or rental property vacancies for 2022.

Continue reading to learn some real estate tips that may help spark more interest in the local market and attract more tenants to your rental property.

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Rental Property Leasing Tips for Landlords and Commercial Building Owners

If you want to fill up your vacant rental property space as fast as possible, try implementing these tricks of the trade! You can reduce your 2022 rental property vacancy and finish the year with a higher level of success than ever before!

Remember That Price Accuracy is Essential

It is important to price your rental property just right. Although you do not want to attract bad commercial tenants, pricing your rental too high can narrow your potential market substantially. By pricing it too low, not only do you risk a series of unreliable applicants and/or tenants, but you also pose the risk of not covering your overhead costs, which can be even worse.

Do not guesstimate your rental price. You can better value your rental property by doing a little research. Examine the local, comparative market to assess the square footage-to-price ratios, inclusive amenities, and rental histories. Your final rental price should be competitive enough to attract the right pool of tenants, whether commercial or residential.

Refresh Your Listing’s Visual Appeal

Technology is fast-evolving, and photography is no different. If you have not taken recent pictures of your rental property, consider re-doing them with a better degree of photogenic appeal. Take new pictures of your property with enhanced photography services and editing. This approach can make your space look more attractive and modern, and therefore, increase market interest. Adding in a 60-degree virtual tour of your rental space is a wise choice, as this feature is a top-amenity for both commercial and residential applicants.

Do you already have recent pictures on your rental space listing or brochures? Perhaps you need to take new ones to showcase different angles and areas of your rental space. Do not forget to take pictures of any outdoor areas. This approach can help to attract new applicants by providing a different perspective.

Advertise a Leasing Incentive

Many rental properties, both commercial offices and residential, offer an incentive for anyone who signs a long-term lease. Consider adding such incentives to attract, not only more applicants, but the right kind. Incentives that have proven effective for other rental property companies and landlords include:

▷ 1 Month Free Rent
▷ Free Internet or Cable for 1 Year
▷ $100 Gift Cards (Restaurants, Gas, Amazon, etc.)
▷ Free Television Set
▷ Free Reserved Parking for 1 Year

Remodel or Renovate Your Rental Space

You can attract more tenants to your rental property through strategic commercial remodeling. Update the curb appeal, function, flow, and technology of your rental, plus incorporate new additions like outdoor gathering spaces and enhanced security. Additional renovations or additions that are suggested to increase tenant interest in rental properties include more parking space, more natural lighting, pet areas, touchless technologies, renewable energy applications, communal spaces, on-site dining, elevators, escalators, fitness centers, and swimming pools. A seasoned Indiana commercial general contracting company can help you achieve these goals.

Have you decided that a commercial renovation or remodel is the right move for attracting new tenants to your Indiana rental property? Contact BAF Corporation at 317-253-0531 for superior commercial general contracting services for tenant improvements in Indianapolis, Indiana. We serve commercial clients all throughout the state.

Who Pays For a Commercial Interior Build-Out?

Posted on November 2, 2021 by bafcorp20

Are you preparing to start a new business and need commercial space? Or are you a current business owner looking to relocate your company? Either way, you will likely be in need of a commercial interior build out. After all, commercial space doesn’t come ready and equipped to support your business’s specific operational needs.

Continue below to learn what you need to know about interior build out tenant improvements, including a financial responsibility breakdown that explains who pays for what.

Commercial Interior Build Out Indianapolis IN 317-253-0531

What is a Commercial Interior Build Out?

Commercial interior build-outs are also referred to in the industry as tenant impr ovements (TI) or commercial leasehold improvements. When you are on the market for a new commercial space, it is very rare to find one that meets all of your needs. From interior design and structure to power fittings, mechanical systems, and more, the majority of commercial spaces require some extent of renovation to personalize the space for the new commercial tenant. This type of commercial renovation is known as an interior build out.

Financial Responsibility Analysis

When it comes to commercial interior build-outs, you might be wondering if the landlord is financially responsible. Since there are many ways for a commercial tenant and landlord to delegate financial responsibility between them in the case of TI improvements, the answer to this inquiry varies depending on many factors.

Here are some possible scenarios on how a commercial interior build-out is financially covered:

If the landlord believes that the new tenant will be a significant asset and bring in more value than other potential tenants, they may cover the entire cost of the interior build out. They may do so by paying the Indiana commercial general contracting company directly or reimbursing the tenant at the completion of the project. Most often, tenants are reimbursed. This protects the landlord from a tenant who changes their mind after the renovations are done.

In another possible scenario, the landlord and tenant might decide to share the leasehold improvement costs a specified ratio. There are a few ways they do this. A landlord can include a tenant improvement allowance in the commercial lease based on square footage, and any renovation costs that exceed that allowance are the tenant’s responsibility. Or the landlord might offer a reduced rent fee or free rent for a specified period of time. These are referred to as rent-concessions.

Are you looking for a qualified and experienced commercial general contractor to deliver an exceptional interior build out within your TI allowance or budget? Contact BAF Corporation at 317-253-0531 for superior commercial remodeling and tenant improvements in Indianapolis, Indiana. We serve clients all throughout the state. Request information or schedule a bid, today.

How to Avoid Leasing to Bad Commercial Tenants

Posted on October 19, 2021 by bafcorp20

Halloween is certainly the time of year for nightmares, but your commercial tenants don’t have to contribute to the seasonal fright. As a commercial real estate owner or property management company, you are bound to be confronted with unqualified applicants. But if you want to avoid leasing to unreliable commercial tenants who have misrepresented themselves on their documents, is important to incorporate certain methodologies into your commercial leasing application process.

Continue reading for some tips that can help you avoid nightmare commercial tenants, plus where to find Central Indiana tenant improvement construction services that will improve your business’s overall success.

Indiana Tenant Improvement Contractors 317-253-0531

Watch Out for Commercial Tenant Fraud

Unfortunately, commercial tenant fraud is all too common. Commercial tenants who commit tenant fraud misrepresent their qualifications or forge documents to present themselves as a qualified applicant for space, such as a retail store, office, or studio. After being approved for the lease, fraudulent commercial tenants often skip out on rent, damage the property, misuse the commercial space, or pose a plethora of tenant challenges and commercial landlord nightmares.

In order to deter commercial tenant fraud and application falsifications, you need to learn how to detect such fraud early on in the leasing and application process. Here are some tips that can help you avoid leasing to a nightmare commercial tenant, while keeping your commercial rental property business profitable:

Do Not Offer Online Application

It is not recommended to use an online application process for commercial leasing, even if you use a third-party platform. Many business application management websites say they will bring in all sorts of qualified commercial tenant applications, but their algorithms are basic and not comprehensive enough to weed out intentional fraud. When it comes to commercial leasing, it is best to always incorporate an in-person application and interview process to ensure that you are leasing to the right tenant.

Do Not Accept Incomplete Applications

There is not much to be said here. If you receive any commercial lease applications that are not filled out completely, shred them without giving them a second thought. An incomplete application is often a telltale sign of commercial tenant fraud. In most cases, applicants fail to complete the application because they are intentionally omitting information to avoid being investigated or denied tenancy.

Always Perform Credit and Reference Checks

Your commercial building or multi-housing property is an important investment that should only be entrusted to those who are dependable and qualified. For this reason, it is important to always perform credit checks and reference checks on all commercial tenant applications. It is common for commercial property owners to ignore references, but this is not a mistake you want to make. References are often more telling than a credit or income check, so be sure you do not skip this step during the commercial tenant screening process.

Advertise Background Checking

It is important to let all of your commercial applicants know that there will be a comprehensive background check during the application process. Advertise this information in the literature that advertises your commercial space openings. This way, tenants know they cannot hide anything or present themselves in a misleading way.

Advertise a Fraud Warning and Declaration

Along with advertising that a background check will be performed on each applicant, it is also important to advertise a fraud warning. A fraud warning will let potential applicants know that there are serious legal penalties and consequences for cheating or misleading their qualifications on their commercial leasing application. This is a great way to thwart commercial tenant fraud. Along with the fraud warning, it is important to include a declaration on the application. A declaration is a statement placed above the signatures of the applicants confirming that all information is accurate to their knowledge.

Require Supplemental Documentation

When you are getting proof of a commercial tenant’s income, it is important to also require supplemental documentation. Ask for more than one type of documentation to prove income when screening a potential commercial tenant.

Verify Identity With a Valid Photo ID

As a commercial building owner or property management company, you want to be sure that you are leasing to the person who is actually filling out the application. It is important to verify a person’s identity by checking their photo ID, or any other authorized identification documents, such as United States passport or military ID. Online applications present all sorts of opportunities for tenants to fraudulently upload their identity or use another person’s identity.

Are you looking for a qualified construction company to perform tenant improvement work to your commercial property? Contact BAF Corporation at 317-253-0531 for professional tenant improvements and remodels in Indianapolis, Indiana. We serve all corporate, commercial, and industrial industries in Central Indiana.