New Tenancy Holders; jot down these considerations now or beware the costs

With years of experience in the field, experiencing the best and most ideal of spaces, as well as the ones we are disappointed to see go so poorly, our team is happy to share the know-how you need to help protect your wallets, fuel your progression, and most importantly, help you take your vision forward with as little hiccups as possible.

3 minute read

30th May, 2023 | Remarcable

You've done your research, toured property after property, and finally landed your ideal commercial space? 

But wait.

Are you sure you're ready to proceed?

Investing a bit of extra care and attention at the start can be the make or break of your experience in driving the business you've been dreaming of, and be the key to saving yourself from a world of inconvenience down the line. Not to mention, for every mistake made, every opportunity missed, and every deadline pushed, more and more of your hard-earned cash may be spent correcting issues as the project develops.

That means there's potentially thousands of £££ to be lost, hours of frustration to be added, and months of lost income at stake here.

With years of experience in the field, experiencing the best and most ideal of spaces, as well as the ones we are disappointed to see go so poorly, our team is happy to share the know-how you need to help protect your wallets, fuel your progression, and most importantly, help you take your vision forward with as little hiccups as possible. 

Let's dive into some key considerations our Project Manager, Craig, believes every tenant should keep in mind before taking on a new space:

1.  Lease Agreement: Unveil the Hidden Clauses

It's time to go into detective mode on your lease agreement. Why? Because buried within those pages are critical details about your maintenance, repair, and structural obligations.

Typically, landlords are responsible for the external structure and fabric of the building, such as the roof, walls, and foundations. But don't get too comfortable just yet, lease terms can vary significantly.

Take the time to review your lease thoroughly to understand your specific situation.

Be on the lookout for any tricky language, and be aware that your future partners down the road won't always be able to fill in for any sneaky wording that later is revealed to have a double meaning.

We recommend contacting legal counsel if you are unsure about anything, as this can help avoid any surprises down the road.

2. Schedule of Condition: Your secret weapon at the end of the lease

Want to protect yourself from unwarranted claims and disputes when your tenancy comes to an end?

Here's the secret: create a Schedule of Conditions.

This document captures the condition of the property when you first step foot inside. Think detailed descriptions, photographs, and videos.

By having this comprehensive record on hand, you'll have solid evidence to combat any claims of dilapidations or damages that may arise later.

Don't let disputes tarnish your success; let the Schedule of Conditions be your rock-solid defense.

3. Direct and indirect burdens: Taming the beast of repairs

We won't sugarcoat it; repair and maintenance obligations can be a financial beast.

It's crucial to understand the full extent of any repairing obligations for the property. Even if these costs do not fall directly on your shoulders, you could still feel the burn indirectly. From leaky roofs, to aging HVAC systems, to defective damp-proof membranes, building issues can wreak havoc on your day-to-day operations, causing stress and hampering your business's smooth sailing.

Know exactly what you're getting into and prepare for the unexpected to ensure your journey is as smooth as can be. 

*Despite exercising utmost care, unforeseen situations may of course still arise. In such cases, a clear assignment of responsibility within the lease is vital for prompt issue resolution and minimal disruption to business operations.

4. Technical Due Diligence: Your Crystal Ball for Success

Before you sign that long-term lease, it's time to put on your visionary goggles and conduct some technical due diligence. It's imperative that you do, to avoid potential disruptions that could turn your dream space into a nightmare.

Evaluate the building's structure, fabric, services, fire safety systems, and environmental factors; through inspections and a review of maintenance and repair history, you'll gain valuable insights into recurring issues, outstanding repairs, and maintenance requirements.

Armed with this knowledge, you can negotiate better lease terms and plan for any necessary repairs or renovations.

Prepare yourself for the journey ahead with eyes wide open.

Final Thoughts:

You're about to embark on an incredible journey into your new commercial or retail tenancy. But remember, success is rooted in careful consideration.

By paying close attention to lease agreements, valuing the importance of a Schedule of Conditions, understanding the ins and outs of direct and indirect burdens, and conducting technical due diligence, you'll be primed for triumph. 

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