Solicitor, Emma Napper, looks at short-term lets of commercial property, highlighting the pitfalls that landlords should avoid.
When a commercial property falls vacant, landlords often arrange a short-term let as an interim measure. This benefits the landlord as it keeps income flowing, avoids liability for overheads, and reduces the risk of the property suffering damage.
However, even if the tenancy is only a short-term one it is still important that landlords to take specialist legal advice. If the correct legal procedures are not followed a tenant can acquire rights, and the landlord could be left facing a lengthy and expensive battle in the courts.
A short-term tenancy agreement is usually most appropriate when the arrangement is intended to remain in place for six months or longer. Providing it is dealt with correctly, then the tenant will not be entitled to remain in the property at the end of the term.
A ‘tenancy at will’ can also be used and this is especially useful in case where the property has already been occupied prior to the landlord taking legal advice, because it extinguishes any legal rights the occupier may have acquired. However, there are potential banana skins that landlords must avoid, so specialist advice should always be taken.
For periods shorter than six months, landlords can use an occupational licence. Again, if it is dealt with correctly and in accordance with the law then the occupier will not acquire a right to remain in the property at the expiry of the licence. It is particularly important however that the occupier does not have ‘exclusive possession’ of the property and are not permitted to remain trading in the premises for more than 12 months.
Because landlord and tenant law is such a minefield, landlords are advised to seek expert guidance from a specialist solicitor. Our team is experienced in dealing with short-term lets of commercial property and will be able to draft the appropriate tenancy or licence you require, along with any formal notices that will need to be served to protect your position. They will also be able to advise you on any other steps you should be taking, such as obtaining consents and complying with planning restrictions.
So, if you need professional guidance on short-term lets of commercial property then please get in touch with us for a chat.
