A Short Guide to Renting any Commercial Property in the UK
To run any business, one needs a suitable space that may either be purchased or rented. This is known as commercial property and in the UK many businesses run by renting a certain commercial property instead of buying it.
According to Oliver Tighe, who is one of the well-known property solicitors in London, commercial property rentals can be quite profitable for both landlords and tenants.
Finding the ideal home and negotiating a favorable lease arrangement, however, can be challenging tasks.
The following are a few steps to follow while renting commercial property:
Table of Contents
Step 1: Find the right commercial property
You must do a little research before finding a suitable commercial property so that it can meet all your needs.
Step 2: Consider all the costs involved
Before agreeing on the rent, ensure that you are paying as per the market rent. Also, consider all other costs needed to run your business activities.
Step 3: Negotiate a suitable commercial tenancy agreement
Before signing an agreement, consult with any lawyer and negotiate your terms and conditions accordingly.
Step 4: Exchange your contracts and complete
Once the funds are available and your commercial agent and solicitor are pleased with the condition of the commercial property as well as the contract, you will exchange contracts.
When the contracts are exchanged, this agreement will become a binding legal document.
Buy or rent?
While selecting a suitable commercial property to run a business, it is important to decide which option will suit you more.
You have got 2 choices:
- Buy your commercial property
- Rent your commercial property from a landlord
What should you consider while renting a commercial property if you decide against buying?
Let us discuss a few pros and cons of renting commercial properties in the UK.
- It offers more flexibility
- One can choose the space as needed
- You can always change the location if you want to expand
- Save on the cost of buying a commercial property
- You can use your money for your business promotion.
- Lacks long-term stability
- Need to follow the stringent terms and conditions of your landlord
- Your rent may either increase or get terminated
- You have limited control over your rented property
- You can do limited customization to meet your business needs.
It is vital to approach your decision with prudence and thorough thinking while trying to rent commercial premises. Before signing on the dotted line, the terms and conditions must be clear to you.
Often price remains the crucial factor when renting a commercial property. You need to understand that besides your monthly rent, there are a few more costs as follows are also involved.
- Maintenance fees
It is crucial to comprehend these expenses completely and make sure your budget can accommodate them.
The final consideration is analyzing the benefits and drawbacks of leasing a commercial property.
Although renting allows for flexibility and avoids long-term commitments, it may also have restrictions or result in future rent rises.
Making an informed decision that supports your business objectives will be made easier for you if you evaluate these variables.