Why You Need To Look At Deposit, Rent And Service Charges In Your Commercial Property Lease

When it comes to commercial property leases, there is a lot involved. The documents can be very in depth and incredible lengthy. If you are a new tenant taking on a commercial lease, these documents can seem tedious, complicated and every scary. This is why you need to work with a team of friendly commercial property lawyers. A team like our commercial property law experts at Burgh Thorpe Solicitors.

One important part of the commercial property leases that you need to carefully consider, with legal support, is the deposit, rent and service charges. We have broken these 3 considerations down below to ensure you know what to consider as a commercial property tenant.

Many tenants think that all they have to do when it comes to the commercial property is pay the rent and maybe the service charge. However, it can be so much more than that. This is why we have put together some advice and guidance from our commercial property lease solicitors to help ensure you and your business are protected.

Deposits in the Commercial Property Lease

As a tenant in a commercial property, you will need to know whether your landlord requires a rent deposit. This rent deposit gives the commercial property landlord a sum of money that they can utilise in the case of missing rent payments, for example. If the rent has been paid as agreed, and the commercial property is left in the correct condition, this rent deposit will be returned to you and your business.

Rent in the Commercial Property Lease

Commercial property tenants are under no obligation to pay the agreed rent sum on the established payment days. Often you will find that commercial rent payment days are quarterly, as opposed to monthly. It is important you look for this in your commercial property lease. It is something that our commercial property lawyers can cover with you too. Non-payment of rent can result in a demand to vacate the commercial premises. At this point, the tenant would be required to pay any arrears as well as substantial costs in some cases.

Service Charge in the Commercial Property Lease

You may find that there is a service charge on the commercial property. In which case, as a tenant, you need to see which services are provided as part of the rental agreement. These details can be requested by the tenant, or the commercial property lawyer, to ensure that unexpected costs do not arrive at a later stage. It is possible that service charges can fluctuate is they are not capped. This means that they could become much higher than you budgeted for.

Need help making sure the deposit, rent and service charges in your commercial property lease meet your needs and the need of the business? Call our commercial property solicitors now to find out more.