FEATURE Taylor Walton Solicitors
Key considerations for tenants leasing a warehouse
Signing the lease on a warehouse represents a major commitment. Every single detail of the lease and indeed the property itself must be considered very carefully. Obvious perhaps, but the excitement or relief of fi nding the right property can cause ten- ants to overlook details that could cost them dear in the future. T is makes it important that the negotiation of
any lease is handled calmly and dispassionately, with the support of experienced advisers, who will consider every aspect of the lease, including the following.
Location and access are critical When leasing a warehouse consider the access. Does the warehouse come with limited hours when it can be accessed? Does it become inaccessible at weekends or outside normal offi ce hours? Any restrictions could limit growth or effi ciency and must be considered carefully. Physical access to the warehouse is linked
6
Tanveer Ranshi Solicitor Taylor Walton Solicitors
closely to its location. Will your business require space for cars, vans and lorries to access the warehouse? Is this space available and easily accessible? If vehicles need to be loaded and unloaded inside the warehouse, you’ll require access to loading doors. If not, you shouldn’t pay for access that won’t be used. Ensure the conditions of the lease cover access to not just the inter-
nal space of the warehouse, but all the external space you’ll need (i.e., parking). If your business requires goods to be shifted in and out of the warehouse regularly, location is critical as are links to wider transport infrastructure.
Is VAT payable on rent and service charges? Many commercial properties are VAT exempt, but this shouldn’t be assumed as the landlord has a right to charge VAT at the standard rate on rent. Once charged on rent it must also be charged on other costs such as maintenance fees or service charges. If you, as the tenant, are VAT registered then you may be able to
claim the VAT back at a later date, but the 20% charge must be included in any outgoings calculated, until the tax can be reclaimed. If you are not registered for VAT and cannot reclaim the money,
you may be able to negotiate a reduction in the overall rent paid to balance out the tax.
What utilities are included in the lease? Some landlords may provide utilities such as gas, water, electricity and broadband in the lease, but this can’t be assumed. So, ensure you under- stand exactly what is included and what you have to source, whilst check- ing the utilities provided will be suffi cient for you to run your business.
ALL THINGS BUSINESS
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
