Leasing a commercial property is not an unusual occurrence and is often part and parcel of running a business. Despite this, we are often surprised by some of the misconceptions that existing around taking on commercial property leases.
Here we look at some of the most common myths and explain the truth behind the misconceptions.
I’m renting not buying, so I don’t need a survey
In many ways, leasing a commercial property brings more legal responsibility than buying a property, as you have a legal contract (a Lease) in place that will require you to meet certain requirements and uphold a number of obligations.
Therefore, knowing what you are taking on at the outset is a useful way to mitigate future liabilities.
A Pre-Lease Assessment advises on the condition of the building and will identify immediate liabilities and repairs/upgrading works required.
Any likely maintenance and repair works that will be incurred during the proposed term of occupation will also be identified, as will the anticipated dilapidations responsibilities at the end of the lease term.
I’ve had legal advice so I don’t need a Surveyor’s advice
Taking legal advice before signing a lease is a good idea as you can ensure that you understand all of the legal responsibilities you are taking on. A solicitor will also be able to renegotiate certain items on your behalf so you can be sure you are happy with the deal. However, a solicitor’s job only extends so far and they will usually always suggest seeking advice from a Chartered Surveyor. A Chartered Surveyor will be able to inspect the property and provide you with advice on its state of repair. If completing a Schedule of Condition on your behalf, this will document and evidence the property’s condition to significantly reduce future liability for dilapidations.
I only need to worry about redecoration, not repair
Most leases will require tenants to take on the costs and responsibility for both decoration and repair of the property.
Depending on the wording of the lease, it may be that the tenant is even responsible for larger parts of the building’s fabric, including its roof, windows and external grounds.
The property is a blank canvass so I can do what I like to it
Having a blank canvass to work with can be advantageous to a business as they can make the space suitable for their needs. Tenants will need to be mindful that in most cases, the fit outs or internal structures they install will need to be removed before they exit the property at the end of the lease.
It is also worth bearing in mind that many leases will contain a clause that allows the landlord to inspect the property at intervals throughout the lease term and many leases will also allow for a landlord to serve an interim Schedule of Dilapidations upon the tenant.
Lea Hough carry our Pre-Lease Assessments and Schedules of Condition for commercial tenants across Lancashire, Manchester, Cumbria and the wider North West. For more information or to obtain a quote, please get in touch.
