If your self storage business leases a property, then there will be several property issues
that will need to be managed through the life time of the lease.
• Initial lease negotiations
• Rent reviews
• Lease renewal
• Lease restructuring
• Lease expiry
• Dilapidations at the end of the lease
All these elements will influence the value of your storage business. A clear knowledge and understanding of the mechanics of how landlord and tenant legislation and commercial leases operate is essential. This core document manages your occupation of the premises your storage business occupies. It needs to be right, as a poor lease will detrimentally affect operation and ultimately the value of your business.
After a long period of stagnant growth in the UK commercial property market, we are now seeing rental growth. This increase in property costs will have an immediate and detrimental affect on the bottom line of your storage business. Therefore, being prepared for a forthcoming rent review and understanding how the mechanism works is essential to keep your rental costs to a minimum.
Whether you have already agreed your lease or in the process of negotiating a new tenancy, expert advice will save you time and money. The long terms implications of a poorly negotiated rent review clause can have devastating implication on the value of your storage business.
Lease Expiry and Renewal
Lease expiry can be a complex process. Many tenants do not realise the implications of their lease expiry. The lease was most likely signed many y
ears ago. Is it protected or unprotected? This have massive implications on your security of tenure at the end of the term.
Are you obligated to deal with any dilapidations and leave the premises in “good and tenantable repair”? Does this mean stripping out all your storage units?
Understanding your rights and obligations is essential. Therefore, acting early is key and taking the best advice puts your storage business in the best position.
What if you need to surrender your lease. There may be a need to re-gear. If you sell the business the lease may need to be assigned.
How your lease is structured can have a positive or negative affect on the value and operation of your storage business. Therefore, taking expert advice and understanding how your lease works will provide you with the tools to reduce your liability.
For property advice from a self storage industry expert call today for a no obligation discussion