Those located in Asia-Pacific and Europe will use the terms Arrears and Tenancies, where customers located in North America will use the terms Delinquency and Leases. For more information on regional terminology, please refer to this article.
Lease renewals are a crucial part of commercial real estate management. They allow tenants and landlords to negotiate new lease terms and extend their business relationships.
We're excited to add an extension to our lease management functionality to handle Lease Renewal Option Expiry reminders. This new feature will ensure that property managers never miss their window in time to renew their leases.
To learn about Reporting on Renewal Options, click here.
Adding Renewal Options when creating a new Tenancy/Lease
In the Commercial Tenancy Wizard, in the Terms step, enter the initial term details as you ordinarily would.
Click Add Right of Renewal, then tick the checkbox titled Tenancy renewals have Options.
Specify the details (how far in advance of the prior term's expiry) of the Option expiry date. Then use the Remind me date field to set a reminder in advance. If your lease uses a structure with an "option window", we recommend using the Remind me date to mark the start of the window.
This will create two linked reminders in the Dashboard Calendar; one on the Option Expiry Date, and one on the Remind me date.
Continue adding the rest of the new Tenancy details and click Save to lock these details in.
Adding Renewal Options to an existing Tenancy/Lease
Navigate to the Terms & Breaks page within a Tenancy, and click on the Current Term tile.
Use the Tenancy renewals have Options checkbox to add any Option expiry details to existing Rights of Renewal. As above, set the dates for the Option expiry date and the Remind me date to create Dashboard Calendar reminders.
Click Save to confirm your changes.
Renewing a Term with Renewal Options
There's no change to the core of the existing workflow to renew a term. You can still access this from the Terms & Breaks page of a Tenancy, by clicking the Renew term button; or from a dashboard reminder. On the new Renewal Option reminders, this will look like the below:
In the Term Renewal page, you can check, adjust if needed, and confirm the details of the New Term and remaining Rights of Renewal.
With regards to Renewal Options, you'll notice two new fields where you can record the date the option was exercised (this defaults to the current date but can be changed), and the Tenant Contact that gave notice.
Following the commencement of the new Term, the Exercise date and Exercised by details recorded at the point of renewal will be displayed on the Terms & Breaks page.