Leasing a shop or office is different to leasing a house or apartment. Shops, offices, warehouses and factories all fall within Commercial Leasing. There are various types of commercial leases depending on the type of property. Whether you are a landlord (lessor) or tenant (lessee) it is important to get legal advice early.
Landlords have legal obligations that begin even before a lease is signed. Legislation gives tenants rights the minute they set foot on your property. Heavy penalties can be incurred by landlords that do not comply with rules set out by legislation.
Tenants have rights that they may not be aware of. In some situations it is illegal for a landlord to charge the tenant for costs in drawing up a lease. Special disclosures need to be made before leasing out retail property. Be aware of your rights from the beginning.
Is my Tenant Credit Worthy
Is my tenant creditworthy?
Signing up a new tenant for a commercial lease is a costly process. To find out that your new tenant cannot pay the rent is disappointing and adds further costs to managing your property. Whether or not you hire a real estate agency to manage the property for you, someone has to call the tenant and chase up late payments. If payments fall into arrears for more than two weeks, you should consider re-taking possession of the premises before the arrears exceed what is covered by the bond. All these extra expenses of a delinquent tenant can be avoided by checking you the tenant’s creditworthiness before signing them up in a lease.
Who is responsible for checking creditworthiness?
Neither the letting agent nor your solicitor is responsible for credit checks. It is the landlord’s responsibility to make these inquiries.