Commercial Tenants - 8 Common Traps To Avoid

Commercial property leases can be complicated and might extend to 50 pages long. Your obligations and rights as regards the maintenance of the building will be detailed in your lease and it is important that you understand what they are. Listed below are the answers to eight common situations you might find yourself in.

1. If I am renting commercial property I do not need a survey.

The property's physical state is key. If the tenant is responsible for the repairs, under a normal repairing covenant you will probably have to put the premises into a good state of repair and not just keep them in the condition they are in at present.

Equally you may have to improve the condition of the premises so as to comply with any new government legislation imposed after the lease commences. The wording of the repairing clause also requires careful consideration. Expressions like 'good condition' can have a significant impact on the tenants responsibilities. Consequently, it is important that you establish at the outset exactly what your repairing obligations are.

2. I have made improvements to the property and the lease has come to an end. I have been told that I cannot obtain compensation.

You should always seek advice before you carry out any improvements to the property. However, in certain circumstances you may be entitled to claim compensation.

3. I can make alterations and improvements to the premises without the permission of the landlord.

It is likely that you will have to obtain permission from the landlord. The lease will detail whether you need to get permission from your landlord, and also whether he can refuse your request.

4. I cannot make alterations to the premises as the lease expressly states that I cannot.

Seek advice immediately! Again, the terms of the lease require careful consideration, however there are ways in which even an absolute prohibition on making alterations can be avoided.

5. The improvements I have made to the premises will not affect the rent I have to pay.

They might! It all depends upon the terms of the lease. The landlord's ability to change or 'review' the rent is a very important part of the lease. The terms of any rent review require careful consideration when the lease is being drafted.

6. I do not have to pay for alterations to the premises which provide for disabled access as this is the responsibility of the landlord.

This is dependent on the terms of the lease, but it will probably be the responsibility of the tenant.

7. I am liable for the repairs to my building, but as it is so old I have been told by the landlord that the only way it can be 'repaired' is by pulling it down and starting afresh.

This will rely upon the term concerning your obligation to repair, but usually this will not require an entire reconstruction of the premises.

8. I entered into a verbal agreement with my landlord for me to rent his shop. We agreed the rent and that I could stay there for 5 years, but that is all. The premises are now in a poor state of repair and my landlord has informed me that the repairs are my responsibility.

Unless there is some express agreement in the lease as to who is responsible for the repairs, neither landlord nor tenant is responsible. As a result, it is always recommended to agree matters in writing.

As with all commercial property agreements, if you have any queries or issues regarding the terms of your lease, you should contact an expert commercial property solicitor for advice so that you do not lose out financially. An experienced solicitor can in particular help to protect your interests both in the original negotiation of the lease and in any subsequent interpretations.