How Missing Lease Deadlines Can Cost You Money

How Missing Lease Deadlines Can Cost You Money

Introduction

Missing critical lease deadlines can lead to financial penalties, loss of negotiation power, or even eviction. This article explores the potential consequences and offers strategies to stay ahead of these deadlines.

Commonly Missed Deadlines

1. Rent Review Notifications: Missing the opportunity to negotiate fair rent adjustments.

2. Renewal Notices: Failing to exercise renewal options in time can result in higher rents or relocation.

3. Break Clause Notices: Overlooking these can lock you into an undesirable lease.

Real-Life Implications

Case Study: Rent Review Challenges

A small accounting firm in Perth leased an office in the CBD. The lease included annual rent reviews based on CPI but required the tenant to initiate discussions. The tenant missed the notification deadline for a rent review, resulting in:

• An automatic 10% rent increase, despite a stagnant local market.

• $7,500 in additional rent paid over the next year.

Resolution

The firm adopted Properting to automate reminders for critical dates. The next year, they initiated the review process early and successfully negotiated a 2% increase, saving $6,000 compared to the prior year.

Get tips on tracking deadlines in our article on critical lease dates.