If you own property that you want to lease to a business, you should be aware of the responsibilities you have as a landlord. Ignoring your responsibilities can lead to problems with your tenants that could easily involve going to court to settle. It can also lead to you being fined by the government for not living up to your legal duties.
Owner Obligations
As the owner of a commercial property, your first responsibility is to ensure the office or storefront can be occupied by making sure it is safe and its environment is healthy. Before leasing out your property, you should have a safety and health assessment done to make sure there are no problems. If asbestos is found on the property, it will be your responsibility to have it removed before the property can be leased and occupied by tenants.
You are also responsible for making sure that any electrical appliances on the property, such as the HVAC system, are safe to use. If there is a gas boiler on site, it should be inspected by a gas safe engineer. The engineer should also inspect the rest of the property if there are gas lines running through the building. Any necessary repairs or replacements need to be completed before you can allow tenants to occupy the property.
Property Maintenance
While you are responsible for the upkeep of your property, some of that burden may be shared with the tenant. Some landlords will clean and maintain the property for the occupants for a fee, but if not, then the tenants need to keep up with their duties to keep the property in good condition. Ultimately, the condition of the building and the structure is your responsibility. To avoid legal problems between you and your tenants, you need to keep up with these duties.
Paying for Fit-Outs
If you own a storefront, then fit-outs may need to be done so the property can accommodate the business that wants to occupy the space. As the landlord, you are under no legal obligation to pay for a fit-out, but you may wish to do so in order to control exactly how the space is converted. However, if there are structural or equipment problems found during the work, you will be responsible for any repairs that need to be done.
Contracts with Tenants
You should hire a commercial property lawyer in London to draw up the necessary contracts that you and your tenants will sign when leasing the property. The responsibilities of each party should be clearly outlined in the contract so there is no confusion about who is responsible for cleaning, maintenance, fit-outs, and other details concerning the property. Then, if the contract is violated, you have the legal means to have the tenant evicted if it is necessary to do so.
Hiring an attorney can help you make sure that every aspect of leasing your property is done properly. A commercial property attorney can advise you on every part of owning and leasing commercial real estate.
