Making & Breaking Commercial Property Leases

There are a number of factors to consider when you decide to let out your commercial property. Taking some time to ensure that you have adequate protection before you let your property can only help you in the long run.

First Step

31529437_sFirst and foremost, you should decide what type of business you want in your property. Your local council will classify your commercial property, as they do with all commercial property and with this classification comes rules about what types of businesses can occupy your property. Always be sure before you lease the property that the business fits into the classification.

Drafting the lease forms the most important part of the process for you, as this will clearly lay down the responsibilities of your tenant and perhaps more importantly, your responsibilities. The lease will give you the power you need to end the lease if your tenant does not keep to the terms of the lease, so it is vital to get the lease drafted perfectly right from the start.

Short and Long Term Leases

Some of the things you will need to think about are the length of the lease you want to offer. There are pros and cons to both long term and short term leases. A short term lease means that if you have an issue with some tenants you can replace them quite quickly, but there is not much continuity with a short term lease.

Longer term leases can be much more reliable in terms of having an income and a stable tenant in place, however a business may have reservations about committing to a longer term lease. You can overcome this by inserting a break clause in the lease, which will allow any tenants to leave the lease after an agreed term, with no penalties.


You will also need to lay out who is responsible for maintenance and repairs, what the service charges are and what is covered in these service charges and the terms of renewing or terminating the lease.

By discussing your lease with a specialist commercial property solicitor, they can give you the advice you need to protect yourself and your property.

If you would like to talk to one of our experienced commercial property law team about leasing your property, please call us now on +44 20 7490 5861, email us on or complete our Free Online Enquiry and we’ll be in touch with you shortly to discuss your requirements.