Letting Commercial Spaces: Hints & Tips for Landlords
Nicola Wood, Director and Head of Commercial discusses how landlords can prepare to let space, either to a new tenant or on updated terms.
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
Will the tenant 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.
Works & Refurbishment
Will you carry out any works to the premises to make them more lettable before a prospective tenant signs up? Consider how much the proposed work might cost, how long it will take and budget accordingly.
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 possible. Will the rent stay the same throughout the length of the lease or will you review after a few years?
Term & Break Clauses
Decide how long you would like the initial lease to be, whether the tenant should have the right to remain on expiry of that term and whether parties will be allowed to break the lease early if the letting does not go as well as hoped.
Contact our commercial team to discuss leases, licences or any aspect of landlord and tenant work.
