Make sure that you've checked potential tenants by obtaining a credit report and references from their employer, bank and previous landlord. Remember it is illegal to discriminate against potential tenants on the basis of gender, sexual orientation, age, nationality, race, disability or religion.
Consider your business needs when leasing commercial property as a landlord, or renting commercial property as a tenant. Take into account several factors, such as how much space you'll need, how you'll be using the property and your financial position. For further information read Entering a commercial lease.
Take care to agree a Commercial lease heads of terms to reflect the deal reached between you and the tenant. Getting it right at the beginning can save time and expense in knowing what you expect from the tenant and when you will get the property back. The heads of terms form the framework of the letting agreement. For further information read Commercial lease heads of terms.
A tenant under a commercial lease in England and Wales has an automatic right to the renewal or a completely new lease when the existing lease expires. This is known as 'Security of tenure'. This can be excluded from the commercial lease if it is 'contracted-out' from the existing lease and was agreed upon by both the landlord and tenant. The tenant must agree to contract-out of the right to security of tenure and it must be in a prescribed form in writing. Serve a Landlord's notice to exclude security of tenure and ask your tenant to sign an Agreement to exclude security of tenure if you want to exclude security of tenure from the commercial lease agreement. Note this does not apply in Scotland. For further information read Security of tenure and Commercial property in Scotland.
Check which letting document is most appropriate depending on the length of the term, the flexibility needed and the circumstances in which you want to let your commercial property. An Office space sharing agreement, a Commercial lease, a Licence to sublet are all documents relevant to renting out commercial property.
Consider asking for additional security, such as a guarantee or a rent deposit especially if the tenant is a new or young company. A rent deposit is a sum of money held as added security for the payment of rent and performance of obligations under the lease. This can be recorded in a Rent deposit deed.