Deciding to move into a commercial property as a tenant can be a big decision. It could be the turning point of your business by providing the space to grow and develop and therefore you need to know what your rights are as a commercial tenant and to be clear about the points you need to negotiate on in your lease agreement.
Your lease will lay out where your responsibilities lie and those of your landlord and there is a code of practice that outlines the best way to go about preparing a commercial property lease.
In the first instance, it is good practice to negotiate the lease along with your new landlord and be open and honest about your needs and requirements. By approaching negotiations in this manner, a lease agreement should be reached early on.
By using a solicitor to review the lease, you have their years of experience in commercial property and receive good, solid advice about the legal aspects of the contract and what clauses you should expect to see and those you do not want included.
A standard lease will include items such as:
- The term of the lease
- Whether there are any break clauses
- Whether you can sub let
- How to renew your lease after the term is up
- The amount of rent payable over the period of the lease
- Rent reviews and how often they happen
- Any insurance held by the landlord
- Who is responsible for repairs
- Amount payable in service charges
- What should happen if there is a dispute
You can see there are a number of areas you should investigate with your solicitor, with some of the most important ones being the break clauses and sub-let terms, repairs to the building and rent reviews. These clauses could make a big difference to your monthly bottom line and the break clause or sub-let option can provide your business with a get out clause if things don’t work out well at that property.
Once you have found the right commercial property to lease, you should make sure that you negotiate the best possible lease so you don’t pay for any oversights or mistakes later on.
We have helped so many clients sell, buy, renew, extend or re-negotiate their commercial lease. We would love the opportunity to help you in your next venture so please simply call us on 01772 424999, email email@example.com or alternatively fill in the form below and we shall call you: