BRS Newsletter

One Date You Can NEVER Afford to Forget

Recently, I learned about an independent operator who had built a successful pizza business only to lose it to her landlord the day after the restaurant's 5-year anniversary.

Even though she had three additional 3-year options on the lease, she failed to contact the landlord and execute the renewal documents before the initial lease period expiration date. The landlord wanted the space for another business so he issued a 30-day "notice to vacate" letter the day after the initial lease period expired. Legally, there was nothing she could do but remove her equipment and other personal property and look for another location.

A real estate attorney informed me that cases like this are more common than you might think. Don't be blind-sided by missing your lease expiration/option dates. At minimum, take the following 3 steps so you're well aware of when you need to take action to preserve your right to stay in your present location.

1.	Prepare a "Lease Expiration Schedule" listing the expiration/ renewal dates on every lease you have no matter how far into the future they are.
2.	Put these dates into an electronic calendar like those found in Outlook or other email/contact management software program. Enter a reminder a week or so before the expiration dates and also 90 days before the expiration dates to give yourself plenty of lead time.
3.	Give a copy of your "Lease Expiration Schedule" to your CPA, attorney and other business advisors with instructions to notify you in advance of these dates.
While it's bad enough to forget about an anniversary or your spouse's birthday, getting blind-sided by a lease expiration date is one from which you may never recover. This article originally appeared in RestaurantOwner.com - "Profit Tip of the Week."