How do I find a property?
Commercial Property Rental
Detailed explanations of all aspects of commercial property rental can be found on the Business Link site
Choosing Your Business Premises
You can find information about all features of choosing your business premises on the Business Link site
Before you embark on the quest to find your ideal property, you should consider the following points:
1) Decide which tenancy agreement is best suited to your business:
- Lease, you will be committed to this property for a set period of time of say three or five years or longer.
- Licence, you will committed for a shorter period of generally less than twelve months and may not have protection under the Landlord and Tenant Act.
- Freehold, you will own the property.
Consider:
- Is your business likely to expand in the short term requiring larger accommodation?
- Do you need flexibility of space?
- Do you want to commit your business or personally to a lease for a period of years?
- Do you have the funds and cash flow to purchase a property?
2) Set a budget for your overall property related occupation costs, which under this heading would include:
- Rent.
- Business rates
- Service charge.
- Professional fees to obtain the property.
You should also consider:
Fitting out costs to adapt the property to your requirements. Until you see a suitable property, this will be difficult to estimate.
Offices are normally ready for occupation.
3) Decide on the type of property required:
- Office building.
- Serviced offices.
- Industrial unit.
- Managed Workspace.
4) Decide on a location, town or city
5) Set an occupation date. .
As a guide allow two months to find a property and two months for the legal process.
It is not unknown in extreme circumstances for the legal process to take twelve months, so plan well ahead.
A licence is generally agreed in less time.
Managed Workspace and Serviced Office operators have a standard lease or licence allowing occupation in days.
6) Consider the various locations and properties available addressing the following:
- How will your staff travel to work?
- How will your customers travel and find you?
- Do you need to present a particular image?
- Do you need to be easily accessible to the road network and public transport?
- Do you require Car Parking?
- How far do you want to travel from your home to your business?
- Are grants available in particular areas for which you would like to take advantage?
- If you move from your existing location will this affect your business in terms of staff and clients?
Once you have set a budget and decided on the location select one or more of the following actions:
Log on to www.proprt.co.uk to view 1,800 commercial properties in the West Midlands.
- If you are looking for Serviced Offices or Managed Workspace return to that section and log on to the various operators web pages.
- Visit the area you want to locate to and note the agents boards on suitable properties and phone for details.
- Look in the local press on commercial property days, ie Birmingham Post Thursday, Express and Star Monday.
- Contact agents and ask them to record the details of you requirement.
- Arrange to view the properties that fulfil the criteria.
- Instruct a Surveyor to find a property on your behalf.
Locating a property can be time consuming taking you away from the day to day running of your business.
A surveyor will carryout all the "leg work" compiling a schedule of suitable properties, visit the properties with you and negotiate the terms and conditions of the lease/purchase on your behalf. This will ensure the terms are negotiated in line with market conditions.
The surveyor will also advise on various aspects of the lease . A surveyor will charge a fee for this service.
AT THE VIEWING FIND ABOUT:
Occupation costs, use the attached schedule.
- Rent.
- Service Charge and identify what is included.
- Business rates.
- Is VAT chargeable?
- Any other charges i.e. car parking.
- Rent free period.
Agreement.
- Length of lease or licence.
- Who pays the landlords legal fees.
The building.
- Hours of access.
- Restrictions on use.
- Work required before you take occupation and who pays.
- Should a building survey be carried out to establish the condition of the property.
- Are the relevant services connected with adequate capacity, ie gas, electricity, water and communications.
- Other tenants in or near the building, will they affect your business.
- Is security adequate and is it a safe location.
If you are looking at a number of buildings take a camera or video to remind you of each property.
Once you have agreed to lease a property you will or may be asked to provide:
- References from your current landlord, bank and accountant.
- Copies of your accounts.
- If your company is new the directors may be asked to stand as guarantors or lodge a rent deposit.
When you have selected a property you could instruct a Surveyor to negotiate the terms and conditions of the lease agreement.
This will ensure your occupation costs are comparable with other similar properties and various terms of the lease are in your favour.
The legal process.
Heads of Terms will be produced that detail the terms and conditions agreed and the parties involved. A solicitor should be instructed to advise you on the commitments of the lease, licence or purchase before you enter into the agreement or purchase a property. Your solicitor will carry out various searches with the Land Registry and Local Authority to establish number of matters i.e.
- Identify the freeholder or landlord of the property and ensure they are able to sell or lease the property.
- Establish if charges are registered over the property.
- Ensure the planning permission is suitable.
- Confirm if the property is affected by future development or planning issues.
Receive a draft copy of the lease or licence and ensure the terms are fair and reasonable.
When the lease or licence is signed and rent paid occupation will be allowed.
DISCLAIMER
The information contained in the Mustard.uk.com Premises section is intended as a guide only. It does not set out to provide comprehensive details, we strongly recommend your seek professional advice before entering into any contractual obligations.
Mustard.uk.com and the authors of this document cannot accept responsibility for information contained in or omitted from the Mustard.uk.com Premises section.
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