Commercial Lease Renewal

4 Top Tips for Commercial Lease Renewals

If you’re a tenant of a commercial property, you’ll most likely be fretting about what will happen when your commercial lease renewal comes round once your lease ends.

Don’t worry, we’ve shared five top tips on what to do when the time comes.

1. Know What’s In Your Lease

You’d be surprised at the number of businesspeople who fail to read their lease properly and comprehend what it means, even in terms of critical aspects such as when it ends. If you haven’t already, make sure you double-check what the conditions of your lease are. And if it’s complicated and you haven’t the foggiest
about what it’s saying, reach out to a professional commercial lease renewals company such as Kirkby Diamond. Knowledge really is your friend here!

2. Do Your Homework on the Landlord and Tenant Act

Most importantly, ascertain whether your lease is inside or outside the 1954 Act. In a nutshell, if you’re contracted outside of the Act, you have ‘security of tenure’ – in other words, it’s your legal responsibility to renew the commercial lease. That said, if you’re dealing with a tenacious tenant or are a landlord wanting to redevelop the premises or inhabit it for your own use, then this doesn’t apply.

On the other hand, if you’re outside of the 1954 Act, things don’t work out so well for you, negotiation-wise, as you have zero security of tenure. The landlord can just request vacant ownership when your lease ends if you don’t agree on renewal terms.

3. Be an Early Bird

Once you’ve understood and read your commercial lease renewal, you’re in a much better position to plan things early and note down significant dates, such as the lease expiry date and any deadlines for serving Break Notices. Diarise these dates so you can plan ahead of time and organise suitable arrangements, such as studying the market.

4. Know the Local Commercial Property Market

To get ahead of the game, do your homework on the local commercial property market - make it your business to know what’s available and on what terms. Inspect the general property sites, and remember to reach out to your local commercial lease renewal company. Numerous properties don’t even make it onto the public market, as they’re bagged speedily by anyone in the picture. You’ll be in a much better position to negotiate your renewal, as you’ll have a better idea about the real market rent for your premises and what else is out there.