Leasing Business Premises, So what Might possibly Go Wrong?
With any luck nothing, but of course if it were that easy, the “Code for leasing business premises in England and Wales 2007” probably would not run to 12 pages. You should remember that this is not the legal document, simply a guideline and by the benchmarks of many of these things, it is very well compiled and succinct. Remember furthermore that adherence to the code is not obligatory, it’s as well to be sure whether your would-be business property owner has signed up to this code.
The code includes quite a few aspects that you would probably expect, clearness of rental charges, rental durations and the process of raising (or reducing?!), and notifying increases in, rent payments for instance. However there are a few other factors which should forewarn the lessee to areas of concern, in particular when he or she is running a small business and is also not used to this area of premises legislation. Service costs for example could be an issue, these may occur as scheduled (insurance say) or irregular (upkeep and refurbishment) sums. Ensure that your property owner is committed to a detailed and distinct calculation and explanation of any probable expenses to help you to assess your overall outgoings in this respect. Should you need more evidence that this area can become contentious, there is even a separate code of practice regarding service charges.
On occasion circumstances may be complex, with several small business units sharing a single enclosed environment. Make certain that any limitations on activities, times of use and entry are appropriately set out. Make sure that you know exactly which space you will have rented (think about car parking spaces that go with multiple small business units for instance). Sub-letting might not be a thing you are thinking about but make certain that restrictive conditions don’t constrain your activities unexpectedly. For example if a distributor deposits merchandise inside the premises which aren’t intended for you, should you be taking part of a bundled consignment for instance, does this amount to him using your office space as storage? Will this be a sublet?
Be totally certain about the condition of the premises at the start of the lease and the expected condition at the end of the lease contract. This may be more complex in the business situation when various requirements may necessitate (for instance) different partitioning of the inside state, or the connecting of apparatus or safety gear to follow certain regulations etc. One thing it is easy to do for free in recent times is take as many digital photos as is possible of the premises just before you start the lease, these might help save difficulties in the future.
In the event that you go into default on the agreement it is likely that you will need some legal help to clear things up but there are very good reasons why, because of the difficulty of the law regarding business properties, you should look at obtaining legal guidance before you take on renting a property for your organization. Look for a solicitor’s firm that has a specialist in commercial premises. Lemon and Co who handle Business Property in Swindon will be be a very good case in point, there should be a suitable firm close to your own area.