Commercial lease

Published byDocMuse

For a shop, a studio, a warehouse or an office. What sets it apart from a residential lease is purpose: the premises are taken for a particular activity, the permits for that activity are the tenant's, and any improvements the tenant makes have to be agreed in advance — otherwise they stay with the property and are not paid for. The contract settles all three separately.

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Common questions

Who obtains the permits for the activity on the premises?

The tenant, at their own expense. The landlord is responsible for the premises being fit for use, but not for your activity being permitted in them. So check the designated use in the documents before signing, not after the first inspection.

What happens to the works I have carried out if I leave?

It depends on the agreement, which is exactly why the contract has a field for improvements. Without such a term what has been done usually stays with the property and what was spent is hard to recover. Agree in advance whether it is compensated, set off against the rent, or left for nothing.

Can the landlord put me out if I am late with the rent?

The contract provides for termination without notice once the delay exceeds the agreed number of days. That is the clause that makes lateness expensive — read how many days are written in before relying on patience.

Can I change the activity carried on at the premises?

Only with written consent. The use is agreed because a different activity brings different wear, different requirements and different risk. Changing it without consent is a breach, even if the premises look suitable.