Demetree Real Estate Blog

4 Ways to Mitigate Potential Impact on Tenants During Your Property Renovations

[fa icon="calendar"] 01.06.2017 / by Keni Flowers


When it comes to renovating a property, landlords have to be very careful not to disturb their tenants too much. If you somehow manage to violate the terms of the lease, you could lose a tenant. In the worst case scenario, they could take you to court and you might end up having to pay for their losses out-of-pocket.

Obviously, it is best to avoid disturbing your tenants overall. Here are four ways to mitigate potential impact on tenants during your property renovations:

1. Communicate

Communicating with your tenants prior to any renovation project (large or small) is really the best way to mitigate any harmful impacts on their business or home life. Make sure to give all your tenants who will be affected sufficient written notice. It is even better if you can communicate in person the following information:

  • Dates and times that renovations will be taking place
  • An estimated timeframe for how long the process will take
  • What exactly is being renovated and why
  • What they can do to prepare
  • Contact info for you and your maintenance staff

Once renovations have been completed, be sure to follow up with your tenants and obtain any feedback they have.

2. Preserve Visibility

For retail tenants, location can be everything. However, no matter how convenient or visible the business is, location is meaningless if street visibility is inhibited. This is why it is very important to preserve the visibility of storefronts and street signage or you might find yourself compensating your tenants for lost profits.

3. Do Not Infringe on Permitted Uses

Along with visibility, easy street access is absolutely essential to retail and office tenants. If customers and employees cannot access the building, you may end up having to compensate your tenants for their losses. As a general rule, landlords should obey the following:

  • No repairs or renovations should be adverse to a tenants permitted use or permanently disrupt traffic flow to the property.
  • Repairs or renovations should not reduce or affect parking or other amenities.

4. Compensating Damages

In the event that you must temporarily block visibility or impede access to the space, you will probably need to provide some type of compensation to your tenants. This could be in the form of rent concessions or some other remedy that provides immediate relief. Keep in mind that the amount of compensation needs to be in proportion to the degree of interference with their business and for as long as the interference continues.

Easier Said Than Done

Handling tenants is often easier said than done, especially when you are trying to improve the property. However, with the right approach and by having a good rapport with your tenants, you can successfully mitigate damages and keep your tenants happy on your property.


Topics: Construction

Keni Flowers

Written by Keni Flowers

Keni Flowers-Baird is the Senior Property Manager for Demetree Real Estate Services. She joined the company in December of 2016 with more than 13 years of experience in managing residential, retail, office and mixed-use assets.