Landlord and Tenant Advice: Points to consider when letting your space

Plans

Be clear about the space that you would like to let and any areas you would like to retain. If necessary, arrange for Land Registry compliant plans to be drawn up showing what will and will not be included in the premises under the new lease.

Use of Premises

Has your tenant considered whether they will need planning consent for change of use? Quite possibly, depending on its business type and how it will use the space. You might consider this a ‘tenant’s problem’, but it is helpful to have an idea of local planning restrictions and allowances. That way so that you have a clearer idea of the likelihood of your tenant’s ability to rent your space.

Works & Refurbishment

Have you thought about undertaking any work to the premises to make the space more attractive? Consider how much the proposed work might cost, but also factor in how long it will take and budget accordingly. Your works may not always be in line with your prospective tenant’s intentions for the space, so keeping the costs to a minimum is a sensible consideration for any landlord.

Rent

Research the market to establish a reasonable rental value, taking into account a new tenant’s intended use. Take advice from a local letting agent if necessary. Will the level of rent will stay the same throughout the entirety of the lease? Will you review it after a few years?

Term & Break Clauses

Decide how long you would like the initial lease to be. Also consider whether the tenant should have the right to remain on expiry of that term. Will parties will be allowed to break the lease early if the letting does not go as well as hoped?

For specialist landlord and tenant legal advice, contact our Cumbria and Lancashire commercial law team on 0333 305 7777 to discuss leases, licences or any aspect of landlord and tenant legal advice.