Tollers Solicitors
Expert advice on repairs can save thousands
T e property a business occupies plays a crucial role in its success. Whether offices, large warehousing or industrial units, retail or manufacturing, commercial properties provide the stable foundations for a business to develop and grow. Where a business is not in a position to invest in its own property,
leasing off ers a fl exible and cost-eff ective option. Identifying a location and fi nding premises to rent at the right price and on a suitable lease length is just the beginning of the process. Unlike renting residential property, commercial leases bring with them many more signifi cant factors to consider – which is where expert advice becomes invaluable. Tollers’ Commercial Property Team, headed up by Partner
Simon Chambers, advises businesses and their owners, as well as commercial developers, investors, lenders and construction fi rms on a comprehensive range of property matters. Simon believes that specialist advice is almost always a pre-
requisite before entering into lease negotiations, and he particularly identifi es repair obligations as one of the most common pitfalls. He said: “Most people are familiar with residential tenancies,
where there are signifi cant protections for tenants with regard to the condition of the property during and at the end of their agreements.
The burden of maintenance falls largely with the landlord in residential agreements. Obligations contained within commercial leases, however, can create signifi cant fi nancial exposure for tenants if they are not properly understood from the outset. “Many business owners are surprised to discover that their lease
can require them to return a property in better condition than it was when they fi rst occupied it. Without appropriate legal advice, tenants can inadvertently assume liabilities that become extremely costly when the lease comes to an end.”
Understanding repair obligations One of the most important aspects of any commercial lease is determining exactly who is responsible for maintaining and repairing the property. Unlike residential tenancies, commercial leases frequently
place extensive repairing obligations on tenants. In many cases, tenants are expected to keep the premises in ‘good and substantial repair’ throughout the term and return them in that condition when they vacate. T e challenge arises when a property is already showing signs of
wear, deterioration or disrepair before the lease begins. “A tenant may take occupation of a building believing they are
simply maintaining it during their tenancy,” said Simon. “T e normal repair obligation, however, may actually require them to remedy historic defects and return the property in a signifi cantly improved condition. T is can become particularly problematic where structural elements such as roofs, external walls, fl ooring systems, windows or mechanical and electrical installations are involved.”
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