Proactive Management of Commercial Leases
December 11, 2018
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Property Dispute Resolution Partner, Claire-Elaine Arthurs, has produced a Four Part Series exploring the common issues that arise with Commercial Property Leases. She considers how a proactive approach can manage risks, avoid disputes and allow both Landlords and Tenants to get the best out of their Tenancy.
Part 1: Begin as You Mean to Go On
Once a new letting has been agreed on a commercial property, the race is then on to get the paperwork completed as quickly as possible so that the new tenant can take up possession. The Heads of Terms presented to the Party’s Solicitors are brief and the legal teams are left to negotiate the detail often without ever having seen the premises. This means the leases agreed are not as tailored to the property as they might be and practicalities relating to the management of the asset are often not given sufficient consideration. This can leave parties with a Lease that is challenging to manage and ripe for dispute. A little more input from those with first-hand knowledge of the property at these preliminary stages can save considerable time, effort and cost along the line.
With the lease in place, it is often the case that, once completed, it is then consigned to the filing cabinet and does not see the light of day until the tenancy ends or there is another issue. At that point it may then be discovered that key dates and details of the lease have been overlooked. This reactive form of management means that issues can easily escalate unchecked, work flows are harder to manage, and costs are significantly higher. By putting in place a more proactive and preemptive approach to managing a portfolio it is possible to avoid the peaks and troughs of firefighting, while maximising the bottom line.
In this webinar, Claire-Elaine identifies some helpful considerations to take into account at the negotiation stage and explores some ideas about creating a more proactive approach to portfolio management.
- Code for Leasing Business Premises in England and Wales 2007 can be found here: http://www.leasingbusinesspremises.co.uk/
- Arbnco Webinar on Minimum Energy Efficiency Standard (MEES) 1 pm on 19th September 2018. Register here: https://arbnco.com/mees-landlord-tenant-might-mees-e125/
Part 2: Common Issues During the Term of Lease
Once a Lease is completed it is then consigned to the filing cabinet and does not see the light of day until the tenancy ends or there is another issue. By that point many issues may have been missed or allowed to escalate unchecked. Options for tackling issues are narrowed and the overall costs of this form of reactive management can be significant.
By putting in place a more proactive and pre-emptive approach to managing a portfolio it is possible to avoid the peaks and troughs of firefighting, maintain assets in better condition and protect the profitability of a portfolio.
In this webinar Claire-Elaine considers some common issues that might arise during the life of the tenancy.
Part 3: Variations to the Lease
During the term of the Lease variations to the terms may arise in a number of different ways. Being aware of these options and being able to anticipate and manage them efficiently can help to avoid disputes, maintain assets in better condition and protect the profitability of a portfolio.
This webinar considers best practice for managing:
- Rent Reviews
- Break Options
- Requests to Assign
- Licences for Alterations
Part 4: Ending the Lease
A Commercial Lease can come to an end in a number of ways, each ripe for dispute. Issues concerning the end of s tenancy can be time intensive and expensive if not carefully managed. A proactive approach helps to avoid those thorny disputes, mitigate potential losses and recover assets cleanly.
In this webinar Claire-Elaine considers:
- 1954 Act Security of Tenure
- Forfeiture and Possession
- Tenant Insolvency
If you have any questions or queries regarding this subject, please contact Claire-Elaine directly and she will be more than happy to help.
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