“It is essential that you seek appropriate professional legal and financial advice as part of your consideration of entering into any Lease or Agreement to Lease”.
The above statement is an important message from the Small Business Commissioner, Mr John Chapman in the recent Retail & Commercial Leasing Guide.
Apparently, as a result of a high number of enquiries received by their office in the last financial year, the Office of the Small Business Commissioner has now introduced a new guide for landlords and tenants of retail and commercial leases.
The guide sets out the rights and obligations of landlords and tenants under the Retail and Commercial Leases Act 1995 (“the Act”).
One of the key points made by the Small Business Commissioner is the importance of obtaining professional advice when entering into such an arrangement.
The liability attached to a retail or commercial Lease is, in most cases, the greatest overhead and potential risk attached to any small business owner. If a small business enters into an initial five year Lease and fails within the first year, that business is potentially liable for the balance of the term (subject to the landlords obligation to mitigate its loss). The outstanding rent for the balance of the term together with “make good” obligations, can leave the owner of the failed business financially crippled.
Like any agreement, it is essential that you obtain quality advice before you sign.
Duncan Basheer Hannon invites you to contact any one of their property specialists to provide specialist advice around your retail or commercial tenancy.