Wednesday, 14 March 2018

A Simple Guide To Renting Commercial Property

If you are considering renting a commercial property then there are many things you need to take into consideration.

Location



This is the most important consideration and can have implications for the cost of the rent. A popular high street location would generally be costly compared to a side street.

When you are looking for a property for a restaurant, gift shop or cafe, then it will be important to ensure you have high footfall, however a specialist shop such as a wedding dress shop. wouldn't matter as much as people would travel to you.

When looking for office space or warehouse space then a high street location may not be important, however efficient transport links to the area would be.

Facilities and services

Basic facilities such as a toilet and washbasin with hot water are essential. however, there are a host of other facilities too that you may want to take into consideration.

If the business has parking facilities or the proximity to parking, this may be a bonus for staff and customers. Check if you have to pay extra if you get parking spaces with the property. If an office or shop is close to cafes and other shops this can also be a benefit.

Are there delivery facilities or parking/loading restrictions near to the business? This is especially important if you have a shop or restaurant/cafe which has regular deliveries.

Cost


As well as rent you need to factor in business rates, which is a tax on non-residential properties in England and Wales. You may be able to get business rates relief from you council so it's worth looking into this, and this could reduce the amount you pay.

Service charges are applicable to commercial property too so you may need to pay the landlord towards the upkeep of the property.

Legal costs will need to be paid and which include professional fees for a lawyer and surveyor, costs of searches and land registration fees and any stamp duty. Other costs include energy costs, phone line, moving costs, and fixtures and fittings.

Fitting and fixtures

Generally, you will be expected to fit out the commercial property yourself as you would like it. 

A commercial property may get high footfall so using a commercial flooring company can be a good idea as they can work around you and your business and fit a beautiful yet practical flooring to suit your needs.

There are specialist fixtures and fitting companies that can fit out a shop and you could consider going to one for all your needs or do it yourself.

Commercial properties will need an alarm so this is another cost to add to your list and shops would need cabinets, a till, a card machine and bags as well as stock.

Legal

As a tenant, you have responsibilities by law when renting a business property and under the Health and Safety At Work Act.

A health and safety risk assessment must be carried out to check for any hazards so you can remove them.  You will also be responsible for fire safety, electrical equipment, gas safety and managing asbestos. 

You need to ensure that there is good ventilation, that the working environment is of a comfortable temperature, that all equipment used is safe, that there are toilets and washing facilities and safe clean drinking water. 

So this is a simple guide to renting commercial property, and a starting point if you are considering this. Good luck with your business!

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7 comments

  1. This is so interesting I've never given it much thought about what renting a commercial property.

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  2. Really great tips here. Making sure that it is all safe and complies with H&S regulations is so important

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  3. I've never really thought about renting a commercial property but this is very interesting x

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  4. Some really great tips here and I will pass it on for sure if I hear of anyone looking to rent one

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  5. I've never really considered what goes into renting a commercial property, so this was insightful. Making sure that it complies with regulations is definitely important! x

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  6. This is a great guide for people who are planning to put up their business, especially for the first time. Location is definitely important as well as your budget for the rent. So many things to consider and you've managed to squeeze it all in this guide! AWESOME!

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  7. Some good tips here. Ive never rented commercially, it does sound like a lot of planning

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