| Starting a new business, want to add some upgrades | | | | can be removed without causing and damage or |
| to your leased space? Take a look into leasehold | | | | violating the terms of the lease, the tenant can |
| improvements. These are improvements made to | | | | remove it when they leave. A great example of this |
| your lease space that add value to the property | | | | would be the owner of a hair salon can take their |
| while you are leasing it. A new light fixture can add | | | | salon chairs, sinks and installed shelving with them, |
| different style and appeal to your business where | | | | stripping the space down to its original structure. |
| the old one was just boring and looked all wrong with | | | | Improvements such as paint would obviously have to |
| your inventory. | | | | stay, therefore becoming the property of the |
| Creating alterations, remodeling, renovating or adding | | | | landlord. |
| on the property by the lessee, to make the space | | | | When looking into leasing a space, check into the |
| more usable, are all types of leasehold improvements. | | | | lease options for upgrades and improvements. Some |
| Other improvements may be painting, partitioning, | | | | landlords pay for improvements to make their leases |
| installing retail counters, and replacing the flooring, | | | | more appealing to you. If this is the case, the |
| adding dressing rooms and many other things. When | | | | improvements would become the property of the |
| looking at the accounting side of your additions, all | | | | landlord when the lease is over. When making |
| improvement items should be listed as an asset that | | | | extreme changes to the leased space, the tenant |
| declines in value over time, as the value is | | | | must discuss the improvements with the landlord. A |
| depreciated over the life of the lease term or the | | | | large improvement that would need approval may be |
| improvement. Upon the end of the lease term, and | | | | installing more than one sink like a salon would have. |
| depending on the type of improvement, it may be | | | | In most areas, landlords are required by law to |
| considered the property of the tenant, or the | | | | provide certain aspects, such as running water and |
| property of the owner without any obligation or cost. | | | | electricity. It is therefore the landlords responsibility |
| Be careful with the type of leasing you are involved | | | | for the installation of water, however if specialized |
| in as well as how timely your payments are because | | | | plumbing is required, that would be the responsibility |
| it can impact your business credit. If an improvement | | | | of the tenant. |