Security Bond.

A refundable deposit will be required in most cases which will vary from property to property. This is not an advanced payment of rent and cannot be recovered until your lease has ended. You may be able to reduce the amount of security required by the landlord by providing personal guarantees or third party guarantors.

Rent.

Understandably, the rent will be one of the tenants major considerations when looking for commercial property. Make sure you know how often rent should be paid, whether it is subject to VAT, how and when it can be changed and what exactly the rent covers.

Also be aware that in the vast majority of cases landlords will require that all sums due to them are paid as ‘Rent’, this may mean that some expenses which you would otherwise consider as exempt from VAT, such as insurance, becomes subject to VAT if your rent is also subject to VAT.

Fitting out.

Consider the costs of fitting out your place of work. This may vary from property to property. The landlord will usually require you to remove all your fixtures and fittings and reinstate the property to the condition it was in on the day you moved in.

If fitting out works entail alterations to the premises, the landlord may require you to enter into a license to alter or additional security. Make sure you discuss these works with the landlords of the properties you are considering, so that you know exactly what will be required of you before, during and at the end of your lease.

Your landlord may be willing to allow a rent free period for works to be carried out or possibly make other concessions for undertaking the works in certain ways. Determine if your landlord will make any contribution for works that may improve the property.

Obtain quotes from appropriate tradesmen for required works before committing yourself to a tenancy.