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Top 10 tips for renting an industrial or commercial property
- AuthorDuncan Morter
Our Commercial Property team have put together the following top 10 tips for you to consider when looking to rent an industrial or commercial property.
- Be prepared – consider the property you are looking to rent, how much space do you need? How long do you need the property for? What type of property is required? Will you need to carry out any works to the property to make it appropriate for your needs? Do you have any special requirements? Be prepared to answer all of these questions when looking to rent an industrial or commercial property.
- Consider your budget – in addition to rent, there are several other costs included in a lease of an industrial or commercial property. This can include rent deposits, service charges, the cost of repairs and maintenance, and insurance. You need to determine what your total monthly or quarterly budget will be.
- Research into potential properties – identify the properties you would be interested in renting. Contact agents, research the properties online, contact landlords direct and visit the sites of the potential properties. This will provide you with more information about the properties.
- Ask questions – the property particulars are normally vague; ask questions to find out more information about the property. For example, check if you will be liable for a service charge, check what services the landlord will be providing, ask whether or not the rent includes rates and the cost of utilities, will the landlord be undertaking any work on the property before you move in, will any areas be shared with other occupiers? etc.
- Check if there are any restrictions on the use of the property – whilst conducting your investigations into the property, it is useful to identify what the authorised use of the property is. Some properties are only limited to a certain use, or may only be open for business during particular hours. It is helpful to check that you are able to use the property for what you want to use it for.
- Consider the size and extent of the premises – it is helpful to consider the size of the premises. Does the property leave room for growth? If so, will you be permitted to make alterations to the premises in the future, if required? Is there a possibility of renting another floor in that building? Does the lease include any external areas, such as parking and storage areas?
- The length of the lease – consider the length of the lease. Is there an option to extend your lease? Check if the Landlord and Tenant Act 1954 will be excluded from your lease. This may prevent you from being able to renew the lease when your current lease expires. The lease may also have a break clause which allows you and/or the Landlord to end your lease early.
- Consider repairs and maintenance – the lease may leave you facing a full repairing and insuring obligation. This will require negotiation with the help of a professional in order to ensure that the obligation is not too onerous.
- Consider your timescales – when do you need the lease to start? Do you have another lease that is expiring? Do you need the two to coincide? You need to be clear on your timescales and try not to leave it too late before looking for the next property.
- Obtain legal advice – obtain professional legal advice as soon as possible. A solicitor will be able to assist from the outset by advising on the Heads of Terms, as well as considering the clauses of the lease and also explaining the consequences of any of the proposed clauses. Your solicitor will assist in negotiating the lease to ensure your interests are protected.
It is important that you seek legal advice when you are looking to obtain an industrial or commercial lease. Our Commercial Property team can not only consider the proposed lease for you to ensure that it caters for your needs, but also explain the options available to you and negotiate on your behalf to ensure your interests are protected by the lease. If you would like any further advice on this topic, please feel free to contact us.