Renting a Commercial Property
Locating a commercial property to rent can be strenuous. It even gets tougher when you are looking for a commercial property that best suits your business needs. This is because there are numerous issues that are to be considered and addressed such as tenancy agreement, rent payment, and additional costs among other issues. Renting a commercial property is a detailed process. Being well-informed on what the process entails is a necessity.
Before renting any commercial property, the following are five things that you need to know;
• Type of Commercial Property
Renting any commercial property does not allow you to undertake any commercial activity that you wish. This is because commercial properties in the UK are categorised into Planning Use Classes which provide a framework within which every property should be used.
These categories are Classes A, B, C, and D. Class A is for shops and some services. Class B is for further industrial and business activities. Class C is for hotels, guest houses, and hostels. Finally, Class D is for non-residential activities. Activities that do not fall under any of these categories such as theatres and petrol filling stations are placed in a different category. It is, therefore, important that you find a commercial property according to the kind of business you wish to set up.
• Tenancy Agreement
A tenancy agreement is a legally binding contract between you and the owner of the property. The agreement outlines the terms and conditions that govern the tenant and the landlord during the tenancy period.
It is important to know every detail of the tenancy agreement because it provides a detailed structure of the obligations of both the landlord and the tenant. This way, the tenant can rest assured that there is no infringement of their tenancy rights.
• Additional Costs
For most commercial properties, rent is not the only cost the tenant will incur in their stay within the property. Additional costs such as service charges, business rates, insurance, and maintenance charges among other charges are likely to be added on top of your rent. As tenant who wants to rent a commercial property, you need to be familiar with all the necessary costs that you are obligated to pay.
• Break Clause
A break clause is a clause written in the tenancy agreement that allows the tenant to end the tenancy earlier than the agreed period. However, this comes with a number of obligations that should be strictly adhered to by the tenant. Knowing what the clause stipulates is necessary.
• Commercial Property Experts
Renting commercial property involves a lot of legalities. Also, there are a lot of technicalities within the renting process. Having a lawyer who specializes in commercial property or experts within the industry is obviously something you want to consider. They will help you interpret clauses, scrutinize contracts and payments, and assist in negotiations. It will help you focus on the establishment of your business as the experts deal with the renting process and any necessary paperwork.