Most businesses need workshops, offices, factories or any other form of premises to operate from. While some businesses operate from their premises, most operate under a lease, paying rent. However, paying the rent is not the only thing you should consider in a commercial lease. There are other important things you have to consider. Here are the top five things to consider when looking for a commercial property to rent.
Is it possible to get out of the lease in case the business fails?
You can end a lease term before the period comes only if you agree with the landlord to do so before renting. It can also be possible if the landlord can allow you to leave without a prior agreement. Otherwise, you will have to pay the rent until the lease term ends unless you find a suitable replacement tenant for the property.
Are there other costs attached to the lease?
If you rent part of the landlord’s property, you may need to contribute to the maintenance and upkeep of the common parts of the entire property. The contribution is usually considered a service charge. Additionally, you will take part in paying the building’s insurance premium to cover damages and the loss of rent that the landlord may incur.
There may be a cost for transferring the lease or sub-letting part of the premises. Before the landlord agrees to transfer or sub-letting requests, he/she has to give permission. Therefore, the landlord can claim the cost of deciding whether to accept the transaction and drafting and conforming with the form containing the written authorization.
You will also be responsible for business utilities, rates, and other outgoings related to the premises.
Can the landlord make repairs before a new tenant comes in?
Most landlords will want to leave the responsibility of making repairs to the tenant. If you agree to make the repairs, you might end up spending thousands of pounds when the lease term ends. It doesn’t matter if the ruin pre-dated the lease. When looking for commercial property to rent, you have to get a survey to inspect and record the condition of the building before entering the contract.
What will happen if after renting the property, you find out that there is a problem that will affect your business adversely?
The landlord must satisfy himself that his property is suitable, both legally and physically for the intended use. It is worth researching into a property through the help of a lawyer to reveal whether the landlord has the power to lease and determine any rights that may affect the property either negatively or positively.
If there is any problem affecting the premises you are operating in, you will not have a comeback against your landlord, and you will be forced to continue paying rent even though you will be paying for a useless asset.
Can the landlord change the locks of the premises if the tenant defaults rent payment?
A commercial landlord has far-reaching powers to deal with rent defaults. Commercial landlords usually apply forfeiture to terminate a lease. They also don’t need court orders to repossess the leased property in case their right to forfeit a lease has arisen due to late payment of rent.
The landlords also have the right to order bailiffs to seize the tenant’s goods and sell them in case the tenant fails to pay rent.