- By Steven Hays
- Published 04/30/2012
Finding the right premises for your business is vital, whether you are starting a new venture or expanding an existing one. The first question a business owner comes across is – whether to buy or rent a property? There are a number of advantages available from either option; however, when you are starting a new business, renting is a better option as it does not lock in a significant capital in the initial stage.
Apart from this reason, renting a commercial property offers a number of other advantages too. You need not bother about the Capital Gains Tax or the rise in interest rates. The rent may rise periodically; however, you do not need to bother about the of real estate prices unless you want to sell the remaining lease term to someone else. Moreover, you do not have the responsibility for the property.
The next question is – how do you find the right property for rent? There are a number of ways you may use to search for the right property. This may include the local newspapers, online resources, estate agents, ‘to let’ boards outside properties, and the local council. If you are relocating to the UK, the corporate relocation services you appoint may help find out the right premises on rent.
The type of rental agreement you enter into is also another important consideration. The lease agreement is the one used for renting commercial properties. The details to be included in the lease agreement are the lease length, service charges, and renewal and break clause. However, if you need a property for a short period, less than a year, you may opt for a license agreement instead.
Keeping certain practical aspects in mind is essential when you are getting a commercial property on rent.
- Registering the lease with the Land Registry is necessary for all new agreements as well as all existing agreements that still have seven years to run
- Getting planning permission for any changes you need to do to the property as well as for any business activities you need to carry on is essential
- Obtaining insurance coverage for the premises as well as the contents of the building is necessary
Which financial details would you need to consider when you choose a property on rent? The details may include the premium to pay for the lease, rental payments, deposit, utilities cost, repair and maintenance costs, service charges, business rates and stamp duty. Make sure the landlord provides the Energy Performance Certificates when you rent a commercial property.
The businesses located within the Business Improvement Districts may have to pay an additional levy for the local improvement projects. This is payable along with the business rates. Though this may seem like an excess cost initially, it would ultimately be beneficial for your business as well, as the improvement projects would benefit every business operating in the area.
Get advice and guidance from experienced estate agents to locate the right UK industrial property on rent.
Author Bio: Steven Hayes is a business consultant based in Hampshire. He provides tips and suggestions for businesses looking for the right UK industrial property on rent.