Leasing a commercial premises will involve the drawing up of a lease agreement. A lease provides both the landlord and occupier with security of tenure for a fixed period of time. If you have commercial property to rent in the West End, you’ll want to attract the best tenant, offering that tenant a degree of flexibility and a secure base from which to run their business.
When leasing commercial premises and drawing up a lease agreement, there are certain things to bear in mind, some of which we’ve outlined below.
1. Get a survey
When you lease a premises, you’ll want to have a survey carried out to determine the structural health of the building. By establishing the condition of the property, you’ll have a clearer idea of what might need repairing or fixing, either now or in the near future. If the survey draws any positives, make sure these form a part of the initial negotiations for the leasing of the property to a potential tenant. A tenant will be more inclined to rent out a property if they don’t have to do any repairs or maintenance work immediately.
2. Outline responsibilities for repair, maintenance and alteration
The ‘repairs and alterations’ section included in the tenancy agreement must clearly state the responsibilities of the tenant and landlord in all matters concerning repairs and alterations. If a long tenancy is agreed, it’s more likely the building will require more maintenance work. A ‘full repairing and insuring’ lease is one where the tenant is responsible for both any repair work and building insurance.
3. Arrange insurance
The lease must make clear who will take out insurance and what that insurance will cover. It’s more usual for a landlord to arrange the insurance, as it is in his or her best interests to do so. The lease should insure against ‘insured risks’, and this can mean anything from fire and lightening to damage caused by flooding. The insurance costs can be passed onto the tenant, but the landlord must make sure this is stated in the lease and agreed to.
4. Get a condition report
Almost like an inventory, a condition report is recommended along with the lease agreement. This should include photos and full details on the condition of the property at the start of the lease. This should minimise the chance of any disagreements occuring between the tenant and landlord during or at the end of the tenancy.