Investor · Los Angeles County, CA · Member since 2012 · 962 posts · 279 votes
Does anyone have a generic move-out letter that basically explains the move out procedure to mom and pop tenants.
I have a commercial property in which the tenant wishes to remove some installed fixtures.
Some of it is dental equipment, chairs etc that they had installed. Just removing them will create "craters" in the middle of tile and look unsightly as they had been anchored to the floor.
In the lease it states fixtures are supposed to remain in the unit after the lease
Are you sure the lease defines fixtures to include the items specific to their business? Are they willing to repair and restore? Some leases allow removal of they restore to the condition the premises was in upon delivery. Do you think you can lease to another business that will use those fixtures? If not, in reality, it will cost you to remove and dispose at your cost, so may be better this way. This is very lease specific, and situation specific, so hard to offer much without seeing the lease provision and learning a little but more about what you intend to do with the property once they vacate, if you don't mind sharing.
I'm not sure I can say there is a "standard", but this is just one more reason to always have a good attorney draft commercial leases. It will cost you much more to deal with now than it would've to have a more solid lease prepared to begin with. If you want to paste in the provision, I can possibly help more.
Look in your lease for things regarding the deposit or making the space rental ready. You are right, the chairs need to stay put for showing purposes. The space is very valuable to a new dentist that can capitalize on residual business from the dentist that is leaving. I've seen vacated dentists offices and they look horrible when gutted. All of the electric, plumbing and chair mounts destroy the space. It makes it difficult for new tenants to envision the space. Do your best to keep the place intact.
Actually I just cut and copied this from the lease (OCR so the text came out poor) it looks like they get to keep their trade fixures. But need to replace or repair where they alter it.
I just agree with @Ash Patel When they leave the space most tenants just trash it. They tear out whatever they find valuable and it leaves the place looking crappy to new potential tenants.
I know if they pull out these trade fixtures and don't properly cap off areas where they ran plumbing for water electric etc it's just going to be a big mess. Something that as a landlord you're stuck with. It's not like running water and electric to the center of the room, like for a dental chair, is useful for 90% of other businesses. So when they rip out their fixtures and leave the place gutted it will turn off a lot of future potential tenants.
You only know this if you're a landlord or in the commercial leasing industry long enough to see it repeatedly.
I figured that's what it would say. I understand, but that's why you have to have these discussions with your lawyer when the lease is drafted and make sure that your needs are captured effectvely before you sign. Sometimes leaving fixtures is way less desirable. Depends on the sitiation. Do you have a security deposit if they fail to restore properly? Do you have a personal guaranty? Either way, if they leave it a mess, spend the few dollars to make it presentable before you show the space to potential new tenants. It will rent faster and possibly for more, so less carry time and more income, well worth it. Good luck!
I figured that's what it would say. I understand, but that's why you have to have these discussions with your lawyer when the lease is drafted and make sure that your needs are captured effectvely before you sign. Sometimes leaving fixtures is way less desirable. Depends on the sitiation. Do you have a security deposit if they fail to restore properly? Do you have a personal guaranty? Either way, if they leave it a mess, spend the few dollars to make it presentable before you show the space to potential new tenants. It will rent faster and possibly for more, so less carry time and more income, well worth it. Good luck!
I totally agree Jessica. These are things to do on original lease.
I sort of inherited this with the building. it's a lease from the eighties that was assigned and amended several times.
I've had tenants leave properties and tear out cabinets, destroying drywall to the studs. Or removing iinstalled mirrors which damaged plaster and left pipes exposed etc etc etc....
I do have a security deposit. The tenant is trying to use that as a credit towards final rent.
I worry it will be left messed up. In that case I'd fix it somewhat to make presentable. I'd just like to hold the tenant accountable for the space and to the original lease.
They have absolutely no right to use it for final month (unless the lease specifically says so, which is rare). Is the tenant a business or the actual dentists? If they leave it a mess, I would absolutely sue for damages. I've seen some nightmares, too, so what I would do is send out a letter now, nice tone, not threatening (yet!), indicating that it was a pleasure being their landlord, you wish them well in future endeavors and remind them that they have to repair and restore any damage from removing fixtures and equipment and that the deposit will be repaid within however many days that the lease requires. Quote actual lease language with regard to the fixtures, if you'd like, or use "in accordance with the Lease" language, but I would get it in writing that there was nothing else agreed upon and you made yourself clear that the lease will be enforced. It will help if you have to sue, too.
@Will F. do a search for used dental chairs on Craigslist or ebay. Show the tenants how cheap they can purchase used chairs. Hopefully that will deflate their perceived value of those chairs. I would type a letter with pictures/ad's and let them know if they choose to remove the existing fixtures, they would have to pay way more in remediating the space.