Commercial landlords: Five tips to avoid tenancy problems

Five tips to avoid tenancy problems SOCIAL.jpeg.jpg

Renting out commercial property can be risky for a landlord, particularly when leases are granted without seeking advice from a lawyer. Getting it right from the start can help prevent big issues if your tenant is behind on rent, leaves the premises or makes structural changes without your consent. 

Based at WHN’s Blackburn office, commercial property specialist Katie Hall shares her top tips on how to avoid a commercial property nightmare.

1. Research your tenant

Make sure you know about your prospective tenant by carrying out business background checks. Consider asking for references from current or previous landlords or trade creditors. If it is a limited company, check who are the directors and shareholders in advance of drafting the lease.

2. Protect yourself against tenant financial problems

You may wish to take a rent deposit, which the tenant pays on day one and the landlord holds onto.  If money is owed, the deposit sum is then immediately available to the landlord, without the need for costly court proceedings. You could also ask for someone to act as a guarantor for the tenant.

3. Make your basic lease terms clear

Take specialist legal advice early on. Too often agreements are made in advance of gaining an expert view. WHN has advised changes to lease terms in order to protect the client but it’s very difficult to go back and renegotiate on something you have already agreed. Take a surveyor’s advice too to gain perspective on rental levels in the market.

4. Don’t allow the tenant to occupy the property early

It may be tempting to allow a tenant access to the property before the lease has been prepared and signed so that a landlord can start to charge rent. However, this leaves a landlord at risk of the tenant acquiring protection under the Landlord and Tenant Act 1954 which can make it very difficult for a landlord to regain possession of the property.

Allowing early access can also disadvantage a landlord during negotiations as well as causing confusion as to who is responsible for repairs, utilities and insurance before the lease is completed.

5. Think long-term

Are you purely in the business of renting out property or might you need to use the property yourself in the future? If you require the right to remove the tenant once the lease ends, there is a strict procedure to go through before the lease is entered into.

Gaining legal advice is crucial to ensure that this is carried out correctly. Without it you could risk being stuck with the tenant indefinitely. You should also consider lease terms that will make the property more attractive to potential buyers or lenders, should you decide to sell or re-mortgage it in the future.

Katie Hall specialises in commercial property transactions. She deals with all aspects of commercial property law, including property acquisition and sales, commercial remortgages and lease arrangements for commercial buildings, as well as specialising in leasehold enfranchisement claims. If you wish to discuss how to manage your commercial property lease, please contact Katie on 01254 272640 or email [email protected].

Enjoyed this? Read more from Woodcocks Haworth & Nuttall Solicitors

Latest news

1

CMAC Group appoints Matthew Ratcliffe as chief operating officer Matthew Ratcliffe CMAC

CMAC Group appoints Matthew Ratcliffe as chief operating officer

03 Apr 2025

2

For sale signs at The Villa Villa Wrea Green has been brought to market (Image credit: The Villa Wrea Green)

For sale signs at The Villa

02 Apr 2025

3

Montane group expands with new Lancashire hub Anthony Rae Scott Murcott And Adam Lee

Montane group expands with new Lancashire hub

02 Apr 2025

4

Trio of wins for Lancaster brand and digital consultancy Tom Grattan MD and Daniel Wallace

Trio of wins for Lancaster brand and digital consultancy

02 Apr 2025

5

College excellence highlighted in Ofsted report Fazal Dad

College excellence highlighted in Ofsted report

02 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Chamber Breakfast Networking – April
Chamber logo - new-02.png.png
LBV Hub Networking
03 Apr 2025 - 03 Apr 2025

Chamber Breakfast Networking – April

The Dukes Theatre, Lancaster, LA1 1QE

08:00 - 10:00

WHN Charity Quiz Night
Evenbrite Quiz 2025.png.png
LBV Hub Fundraisers
03 Apr 2025 - 03 Apr 2025

WHN Charity Quiz Night

The Stables Country Club, Bury , BL9 1PU

18:00 - 22:00

Lancashire Business Expo 2025
https---cdn.evbuc.com-images-880395853-4862066883-1-original.20241022-091152-2.jpeg.jpg
LBV Hub Exhibitions
04 Apr 2025 - 04 Apr 2025

Lancashire Business Expo 2025

Sir Tom Finney Sports Centre, Preston, PR1 2HE

09:00 - 15:00

The Business Network Central & East Lancashire
LBV Hub Networking
24 Apr 2025 - 24 Apr 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Amber River True Bearing quarterly investment seminar
LBV Hub Seminars
22 May 2025 - 22 May 2025

Amber River True Bearing quarterly investment seminar

Cottons Hotel & Spa , Knutsford, WA16 0SU

16:00 - 18:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin