When renting a commercial property it is important that you ensure you have checked the property thoroughly before even considering signing a contract.
It is worth carrying out your own checks before you instruct a surveyor. You’ll be able to get a decent general idea of the state of the property, and any major works that may need to be undertaken. It could also be an idea to have a look around any other properties nearby to see if they have any issues.
You will also need to find out whether the building has the right planning permission for any works that you intend to carry out.
It is important not to overlook the little things. You will also want to confirm the cost of the rent, when the rent will be reviewed, and the cost of business rates. It is also vital that you find out how long the lease is, and whether you can renew the lease. Your solicitor will find these things out for you, but you need to be well aware of these things yourself. It is easy to get caught up in the excitement that surrounds renting a business property – but you don’t want to miss out on the details.
A Landlord will screen a prospective tenant for a commercial property in much the same way that a residential tenant is screened. This involves referencing checks that will confirm that the prospective tenant is who they claim to be, and that they can afford the specified rental costs.
Other checks include:
A previous landlord’s reference, which will allow the landlord to check with the tenant’s previous landlord that they were a sound tenant and that they kept the property in a reasonable state of repair, and that there were no major issues concerning rent arrears etc.
A tenant credit check. You must obtain the tenant’s permission to carry out a credit check. Once that has been obtained you can use a credit bureaux to check their credit score.
If the new tenant is an existing company and not a start up, you can check their performance through Companies House.
Whether you are a landlord, or a tenant, it is important to work with an experienced solicitor when negotiating a contract and carrying out relevant checks.