How to rent out a commercial property

29 May 2019

Renting out a commercial property is a desirable move for many property owners, as it ensures a steady stream of income from tenants who could be using the building for many years to come. But before you dive in, take a moment to get to grips with everything you need to know about leasing out your own commercial property.

Put your property in the spotlight

Obviously, if you want to lease out your commercial property, people need to know it is available! There are a number of ways to do this, and in the technological age, digital platforms are unavoidable if you want to successfully market your building. Old techniques will leave your property overshadowed by competition using new technology to highlight their property on the market. However, if you’re not tech-savvy, you may not know how to approach the issue of standing out in this new style of market.

But this isn’t a step you can afford to get stuck in the old ways on. Contact Propsellers today for advice on how to easily promote your commercial property.

Letting documents

There’s no escaping the paperwork, and there are a number of documents that you will need to have to hand before letting your property.

Health and Safety

  • Risk assessment — conducting a risk assessment is a must. From fixtures and fittings to asbestos, it’s important to provide a thorough risk assessment for your tenant.
  • Fire safety — though elements such as evacuation processes are down to your tenant, a landlord should still take fire safety into account as part of the risk assessment.
  • Gas safety — as the landlord, you need to take charge of maintaining the gas installations and appliances in the building, as well as arranging annual inspections.
  • Electrical safety — fixtures and fittings installed by you remain your responsibility to maintain. Plus, the Electrical Safety Council recommends testing should be carried out every five years or when a new tenant leases the building.

Tenancy agreement

Arguably the most important documents, your tenancy agreement is not just to reassure you of your tenant’s responsibilities, but also of your responsibilities to them.

  • Tenancy agreement
  • Application form
  • Tenant credit check and references
  • Right to Rent check
  • Deposit protection

Property documents

Additionally, you will need to have:

  • Inventory (if applicable) — protect yourself and your tenant with an inventory of fixtures and appliances you have already installed/supplied within the property.

Commercial lease

A commercial lease binds the tenant to the landlord. It outlines, and agrees upon, the proposed use of the property, the condition of the property, and the security of tenure.

Tennant responsibilities

Be sure to get to grips with the tenant’s responsibilities when leasing your property too. According the UK government website, a tenant’s responsibilities include:

  • Health and safety — although as landlord you will have conducted a risk assessment, the tenant will also have a duty to maintain this. Tenants will be responsible for ongoing fire safety, electrical safety, gas safety, and asbestos management alongside the landlord, where applicable. The tenant is also responsible for temperature management, space and ventilation, toilets, water, and safe equipment. The landlord, however, is responsible for health and safety aspects in communal areas.
  • Repairs and maintenance — this is down to what is agreed in the lease, but tenants can potential have a duty to uphold this too.
  • Continuation of paying rent even in the event of a dispute — tenants have a responsibility to continue to pay the rent of the building they are leasing even in the evet of a dispute with the landlord.

Sources

https://www.gov.uk/renting-business-property-tenant-responsibilities

https://www.rocketlawyer.co.uk/article/entering-a-commercial-lease.rl

https://www.leathesprior.co.uk/news/legal-musts-for-tenants-and-landlords-of-commercial-properties

https://www.simplybusiness.co.uk/knowledge/articles/2017/02/what-are-a-commercial-landlords-responsibilities/

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