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Renting Premises
1. The Basics
Check what it is that you are renting.
1.1 When comparing premises use fixed cost - rent, rates and service charges - per square metre as your yardstick.
- In particular, service charges and rates can be high.
- Check that you do not have to pay the landlord's legal costs.
- On a lease, the tenant normally pays stamp duty and registration fees.
- In some circumstances, VAT may be charged on the rent. Depending on your own VAT status this may be reclaimable.
1.2 Is the building owned by the person who is renting it to you?
- Does this person have the legal right to enter into an agreement with you?
1.3 Are the premises unoccupied? Is anything preventing you moving in?
- If there are items left by a previous tenant, who will remove them, and when?
1.4 Are the measurements of the premises accurate (as listed in the selling documents)?
- Check them. Finding a discrepancy may enable you to negotiate a lower rent.
1.5 Are all the agreement details, including the rent and the start and end dates, correct?
1.6 Are your basic rights explicitly mentioned in the agreement? For example:
- Access to the premises 24 hours a day, 365 days a year.
- The benefit of any services, such as lighting, heating and cleaning.
- Use of shared facilities, such as washrooms and specific parking places.
- The right to hang signs on the premises (eg your name plaque).
1.7 Are there any restrictions on how you use the property?
- Can the landlord restrain your activities in any way?
- Do you need planning permission to use the premises for the purpose you have in mind?
Labels: Premises
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