Which tenant rights and responsibilities should be included in a commercial lease?

Tenant Rights

A good commercial lease should clearly include key rights and responsibilities. It might seem like an unnecessary extra complication at the start of a business deal, but it ensures everyone is one the same page from day one. That way, if things do go wrong, evicting a tenant is much simpler, as they will be in breach of terms that are set out clearly in writing. Here we take a look at the main clauses to consider before you sign on the line.

The lease term

Most commercial tenants have the right to renew a commercial lease once it expires, but you can prevent the lease from rolling over by setting an end date. These fixed-term tenancy agreements ensure that both landlord and tenant must agree to continue the tenancy once you reach a set date. If you think either you or the tenant may wish to end the lease before this, you could also include a break clause.

Payment terms

It might sound obvious, but including the exact payment terms of the tenancy is a vital inclusion. This means not only the amount payable, but also the dates on which payments are due and the right to charge interest on any late payments.

Repairs and maintenance

A lease can determine a lot about which side has responsibility for health and safety, maintenance and repairs. Usually, as a landlord, you’ll take responsibility for these matters in communal areas and the tenant will handle them in the specific spaces they are leasing. However, it may be wise to address the specifics in your lease to avoid disputes or even legal action at a later date. You might also want to include ‘dilapidations’, which refers to repairs and restorations that must be completed at the end of a lease. These ensure the property is returned in good condition.

Forfeiture clause

One of the most important inclusions to remember, a ‘forfeiture clause’ states that the landlord may end the lease when a tenant is in breach of any of these clauses. Having this clause in place makes an eviction process, should it arise, much simpler, although tenants may still challenge it in court.

If you're having problems with tenants, and need support either reclaiming unpaid rent or starting the eviction process, contact Dukes Bailiffs today.