Tenant improvement is also known as “Leasehold Improvement.” The customized modifications made in the rental space are considered part of the rental or lease agreement. The tenant improvement project is configured according to the needs of a particular tenant.
This allows the tenants to be in a space according to their requirements and special needs, and landlords can charge an extra amount for the modification made.
Tenant Improvement Project and Roof
There are many forms of tenant improvements. Some of the most common types are:
- Air Conditioning
- Fire Protection
The flat roofs are an integral part of a building. Especially in the USA, the value of the property increases or declines according to the roof situation. Similarly, you need to pay high if the roof situation is excellent; otherwise, the rent value will go down automatically.
Thus, the roof’s condition becomes critical to raise the overall value of the building. When someone sells a house in the USA, he needs a roof certificate, which guarantees that the roof will not leak for the next two years.
Roofing Tenant Improvement Process
The purpose of a tenant improvement project is to facilitate the tenant and increase the property’s value. Many people can get confused when they are renovating the roof according to tenant requirements. Therefore, I have divided the process into five steps to make it simple and more realistic.
The first part is to negotiate the terms with the tenant. There can be different roofing requirements for different types of people, which associates different cost structures. Therefore, making an outline of all the possible costs and putting them in the agreement is essential.
The agreement must contain the following outlines on which you can further negotiate:
- Scope of work
- Material to be used
- Extra weather coating
- Insulation requirement
- Substantial completion of work
- Any additional cost
Once you and the tenant are on the same page regarding all the material and cost, you must put everything in the written form. This written agreement will allow systematically locking the deal with no confusion left.
Once you get a go-head from the tenant, you can start with the roof’s construction process. This involves four steps:
- Selection of a Roof Manufacturing Service
- Design of the Roof
- Construction Plan
- Total estimated cost
All the cost is determined by the type of material and design chosen by the tenant. Therefore, you must bring him on board to make sure that you are in the right direction. Once you have the design and material approval, you can get started with a suitable service provider.
Selecting a capable roofing service is essential to ensure the high quality of the roof; therefore, you must do some research to ensure the high quality.
The payment process for different roofing companies is different. Some companies can ask for full payment in advance, and some can ask for partial payment. You need to negotiate the payment process in advance to ensure that no problem occurred afterward. The best way is to keep everything in the written form (on email) to avoid any trouble later.
This is crucial to ensure that the roofing work is done according to the highest quality standards. You can do a third party inspection and get a complete quality report. This activity aims to get a certificate of occupancy, which states that the work done on the roof is of high quality, and there is no objection related to the design.
Once done with the inspection, you are ready to hand over your property to the tenant. Before the handover, you need to get approval from the tenant that the roofing work is done according to his requirements. If he requires any small modification, you can do it with mutual understanding.
However, this modification should be according to the agreement made in the first place. If there are budgetary restrictions, you can ask the tenant to pay more. Once everything is clear, you can handover the property to the tenant.
What to Improve in the Roof?
You have a clear understanding of the roofing tenant improvement process. Being a landlord, the first thing that comes to mind regarding the roof is the required improvement level. Therefore, you must know precisely the weak areas of the top and improve it. This way, you’ll be able to rent it at a high amount and generate more revenue.
Certain steps need to be followed once you have decided to go for a roof renovation.
Before starting anything, you need to analyze the condition of the roof by yourself. You do not need to be an expert to examine the external condition of the roof. Therefore, it helps a lot to evaluate the level of work that needs to be done.
Making an Initial Estimate
Based on the personal level analysis, you can make a rough estimate of how much work needs to be done. Your tentative estimate can base on the following points:
- The material used in the roof
- Age of the roof
- Area of the roof
- Level of damage on the roof
Choosing a Right Contractor
Once you get a gist of the level of damage and a tentative cost estimate, you can contact a reliable roofing contractor to deeply analyze the situation and provide you with a precise initial cost estimate. The contractor’s reliability matters a lot because they can provide a high level of service and increase your roof’s age.
Choosing the Right Material
After the analysis, you need to choose the material according to the tenant’s damage and requirements. Whatever material you are using, you need to make sure that it is of the highest grade for safety purposes.
Finalizing the Budget
Keeping in view the level of required improvement and tenant requirements, you can now finalize the budget. The payment terms need to be sorted out systematically to avoid any problem.
Get a Go Head
Once you and the tenant are on board with the design and other roofing requirements like material, insulation, weather coating, etc., you can go ahead to the contractor to start work on the roof.
In a nutshell, the tenant improvement projects are beneficial for both the tenant and landlord. Tenants can get a customized building according to their requirements, and landlords can enhance the value of their property. The flat roof is an essential part of any building, and in some situations, it is the most critical element in determining the value of the building.
The roof must be in perfect condition so that it can provide maximum value. There are different roofing requirements from other types so tenants. Some require an insulated, weather coated or a well-designed roof. Therefore, flat roofs are considered to be a critical part of this project.
There is a lot of confusion in the masses regarding what to improve on a roof. I have jotted down a step by step procedure of communicating with tenants regarding their roofing requirements and how you can translate these requirements to the external roofing contractors. The crucial element in this whole procedure is to stay within budget and put everything in written form to avoid any problem.
Tenants should be an integral part of the whole procedure, and you must approve the project at each step to ensure that you are in the right direction. Once you get the certificate of occupancy, you can handover the property to the tenant.