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| Renting Premises |
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| Taking a Licence |
| Taking a Lease |
| Option to Sub-let |
| Option to Assign |
| Repairs and Alterations |
| Negotiating |
Renting Premises
7. Negotiating
In the case of a licence, the landlord may be offering standard terms on a take-it-or-leave-it basis. You may have little scope to improve the terms, unless the landlord is desperate.
7.1 Hire a good solicitor to negotiate your legal agreement. This is the key to safety.
- Choose carefully. Establish how many similar leases the solicitor has handled in the last six months.
- Make the solicitor explain each clause in the agreement to you.
- Discuss worst-case scenarios.
- For information and a contacts list, call Lawyers For Your Business (020 7316 5521).
7.2 A chartered surveyor (or an incorporated valuer) can advise you on the commercial aspects of the agreement.
- For information and a contacts list, contact the Royal Institution of Chartered Surveyors (0870 333 1600
7.3 The longer a lease is, the more important it is to negotiate an exit route.
- For example, a break clause, the right to sublet or the right to assign the lease.
7.4 Sell yourself as an ideal tenant.
You should be offered better terms if:
- You can prove your business' ability to pay the rent over the period of the lease.
- The landlord believes you are trustworthy and easy to deal with.
7.5 Get a detailed breakdown of costs, so you can identify items to negotiate on.
- If you cannot avoid certain costs, ask the landlord to cap them at an agreed level.
7.6 Although you should be wary of the VAT implications of any arrangements involving barter or inducements, be prepared to trade concessions.
For example:
- You could pay for a repair job in return for a rent-free period.
- You could avoid a personal guarantee by providing a larger deposit.
- In a property slump, landlords may offer incentives, such as a rent-free period, before you even start negotiating.
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