If your business leases its offices or industrial space from a landlord, then you need to know what happens when your lease comes to an end.
The steps following the end of the lease will depend on the wishes and needs of both your business and the landlord, but the lease will either be terminated upon expiration or renewed.
In either situation, it is important that you know your rights and obligations to ensure the best outcome for your business.
Termination
At the end of a commercial property lease, it’s common for businesses to end their lease if they are looking for more or less space. Commercial property leases are generally longer than residential ones, leaving more time for changes in your business and its needs.
You may need to notify your landlord if you intend to allow your lease to expire.
When this happens, you will no longer have the right of access to the property, nor will you have responsibilities towards its maintenance and proper use – beyond the obligations outlined in your lease agreement.
These will typically include:
There may be negotiations or disputes over the state of the property and the extent of repairs required, or any other issues such as unpaid rent.
You should seek advice if you think you are being asked to pay for a repair unreasonably.
Renewal
The other option is for tenants to renew their lease.
This can be done by either:
It’s likely that you will remain in the property while a new lease is negotiated, known as ‘holding over’, during which period the original lease applies.
Getting advice
Whichever option you choose, it’s important that it is a considered decision which reflects the needs of your business.
We can advise you on your rights and obligations when managing your commercial property lease, liaising with your landlord and finding the right property.
Our Commercial Property team are here to help keep your business on track. Contact us today to find out how.
