Taking the headache out of leasing business premises
Our motto here at Davidson Webber is “No Bull”. Hopefully you have not been in a situation where you want to rent premises and your Landlord’s lawyer has sent you a wordy, standard form lease packed with clauses which may have no commercial relevance.
On other occasions we find that businesses have not thought through the practicalities of critical situations which may well arise. If you are thinking of renting commercial premises, consider the following practical points
1. How long will I really need these premises? If my business does not take off, or I need to expand, can I end the lease early? If I want to stay longer - do I have the right to renew?
2. Have I checked with an agent that the rent is fair? Is this really what I will be paying or do I have to worry about a service charge on top of the rent and business rates? If there is a service charge, can I cap it, and will I be paying for things that are of no long-term benefit to me?
3. Who pays for repairs? Most leases expect the tenant to pick up the tab. What about having a survey done? How about attaching to the lease a photographic schedule showing what the premises were like when you moved in, with a clause added to the lease saying it will be enough if you simply keep them in the same condition?
4. Does the lease allow me parking and other rights I expected when I moved in?
5. Has my solicitor taken the trouble to visit the premises? (It is amazing what you see as a lawyer if you make the effort)
6. Can I legally use the premises for my business? Consider planning permission and whether you may have to pick up the tab for costly improvements due to fire regulations or disability discrimination laws. Beware that most leases will put the financial responsibility for compliance on the tenant.
7. Will I need to share occupation with anyone else? (Most leases try to restrict this.)
Make sure you find answers to these points before you see your solicitor, as doing so will save you time and money. If they do not raise these issues with you, then find another lawyer!
