Commercial
Property Specialists

Some businesses do rent business premises without legal advice, particularly when they are agreeing a flexible property licence with a reputable landlord such as a local authority. But you need to be very clear about what obligations and potential liabilities you are taking on. For example, you could find that you are liable for expensive repairs, trapped in an inflexible arrangement, or renting from a less accommodating landlord if the property is sold on by its owner.

It depends on the terms of the lease. Most leases will impose some repair and maintenance responsibilities on the tenant. Your responsibilities might be as limited as updating internal decoration from time to time, or include full responsibility for internal, external and structural repairs and maintenance.

Unless you have completely fulfilled your repair and maintenance obligations, the landlord will usually be entitled to serve you a schedule of dilapidations detailing the work that is needed and the estimated costs. This can include requiring you to reinstate the premises to its original condition if you have made alterations — even if the landlord consented to the alterations.

If you fail to carry out the required work before the end of the lease, the landlord is likely to claim damages from you to cover the cost of putting things right. In some cases, however, these damages could be lower than the cost of doing the work — for example, if the landlord is planning to redevelop the premises anyway.

In most cases, the landlord and tenant will agree a payment to cover any dilapidations. If you are approaching the end of your lease term, or have been sent a schedule of dilapidations, you should take advice. Your lawyer can work with a local chartered surveyor to negotiate a fair outcome for you.

Your responsibilities depend on the lease.

For a short-term rental such as serviced offices, you might only be responsible for internal decoration, with other maintenance and repairs being the landlord’s responsibility.

With a typical commercial property lease, your obligations can be much more extensive. With a ‘full repairing and insuring’ lease, you are generally responsible for internal, external and structural repairs and maintenance. Or you may only be responsible for internal repairs and maintenance, while the landlord maintains the structure.

Unless you have completely fulfilled your repair and maintenance obligations, the landlord will usually be entitled to serve you a schedule of dilapidations detailing the work that is needed and the estimated costs. This can include requiring you to reinstate the premises to its original condition if you have made alterations — even if the landlord consented to the alterations.

If you fail to carry out the required work before the end of the lease, the landlord is likely to claim damages from you to cover the cost of putting things right. In some cases, however, these damages could be lower than the cost of doing the work — for example, if the landlord is planning to redevelop the premises anyway.

In most cases, the landlord and tenant will agree a payment to cover any dilapidations. If you are approaching the end of your lease term, or have been sent a schedule of dilapidations, you should take advice. Your lawyer can work with a local chartered surveyor to negotiate a fair outcome for you.