Commercial Tenant’s Obligations

Tenant’s Obligations Stipulated In The Lease

A commercial tenant’s obligations are stipulated in the lease agreement. Although it might seem obvious, it’s surprising how many tenants overlook what’s in the written contract with the landlord. What’s been verbally agreed may differ from what’s been written in the lease. Also, be mindful that a commercial lease should have enough provisions to cover any eventualities beyond a tenant’s control. For instance, if the landlord points to any damages to the property, the tenant could be liable. Even after lease ends, regardless of the circumstances that led to the damages, the tenant needs to comply with leasing obligations. 

Disputing Obligations In The Lease

Tenants will find their legal obligations outlined in the lease agreement. These obligations may include insurance, repairs and maintenance. Prior to agreeing and signing the lease, obligations can be disputed and even obliterated from the lease. But once the lease is signed, there’s very little a solicitor can do to help landlords and tenants dispute its contents. However, there might be aspects in the lease that may be unreasonable. Also, some clauses may not be in compliance with the Landlord & Tenant Act 1985. A property solicitor can help landlords and tenants review leases and come to a mutual agreement.

Early Tenancy Termination

Whatever reason leads to the early termination of a tenancy, the landlord needs to be notified in advance. Equally, the tenant needs to be notified with reasonable notice. A property solicitor can help determine whether it’s possible to break clause and negotiate with the landlord or tenant.  If the lease has a rolling break, then the tenant should be allowed to end the lease term at any time. Also, because of the uncertain times we’re living in due to the effects of the pandemic, some landlords are offering more flexibility, allowing tenants to lease with security of tenure.

Commercial Tenant’s Obligations

Apart from the obvious, such as health and safety, as well as repairs and maintenance, tenants have obligations they need to comply with, when leasing a property. These obligations depend on what’s in the lease. But some obligations are in the Landlord & Tenant Act, so there’s no dispute in relation to, for instance, rent payment. If you are a commercial tenant or landlord, please get in touch for an informal chat. We’ll be happy to advise you and assist with any issues you have in relation to commercial leasing. SG

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May 7, 2021 at 9:00 am
Category: Commercial Property, Leasing Buying Selling, Property

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