There are two things that take up most of the money in a business: paying the staff and paying the rent. That’s why, when a business owner finally finds the perfect property in which to install their company, it’s worth finding a really good commercial lease solicitor in London to help with the negotiations.
Brits may not be big on haggling, but when it comes to the leasing of commercial property, this is one place where the tenant can really benefit from haggling. The landlord is always going to make terms that are heavily weighted in their favour because they expect the tenant to try and beat them down on the rental agreement. The tenant, not yet moved in or business underway, will never be in such a good position to negotiate again. The best way to haggle is to get someone experienced to do it. That means finding a reputable commercial lease solicitor in London, such as Saracens Solicitors, a well-known West End and City law firm with high value customers.
Right now, what with Brexit and all, it’s a great time for tenants. This is the first time since 2012 that occupier demand for commercial property in London has not risen.
Important stuff to know
If the lease is covered by section 24-28 of the Landlord and Tenant Act (1954), the tenant can renew the lease automatically when the old one expires. There are only limited grounds on which the landlord can object. This can make a huge difference because, with business as much as homes, it’s important to think location, location, location.
There may be more to haggle on than just the rent. Rather, like an employment package, it’s important to check out other perks than just the exchange of money. If the landlord won’t budge on the rent, maybe they would be willing to cut a deal on car parking spaces. If there’s a lot of free commercial property around, the commercial lease solicitor in London may be able to get the landlord to consider a rent-free period while the tenant moves in and gets their business going, or to cover the cost of repairs if the landlord is going to do them first.