If you’re looking to rent a commercial property for your business in the UK, the process may seem daunting. But with this step-by-step guide, you’ll have all your questions answered about securing the perfect premises. It explains how to successfully find and rent a commercial property that meets your needs, without breaking the bank.
Find the right commercial property
Finding the perfect commercial space for your business means being clear on your needs. Perhaps you require a wide open warehouse space or offices with room to grow. When searching for a commercial space, envision your business in five years time and look for a flexible space that will avoid costly relocations in the future.
Finding a property in the right neighborhood is also essential. Do your research to understand the area’s demographics, amenities and incentives. For example, you might want to consider putting down roots in a Business Improvement District where local businesses band together to enhance their environment.
As you tour potential spaces, look for must-haves like parking, delivery access and transportation links, as well as proximity to clients. Decide whether the space reflects your brand and if you can envision your team thriving there. Also, check for red flags like dampness or cracks, which could signal bigger structural issues with the property.
Finding your business’ new home may take time and effort but the payoff of increased sales and productivity will be worth it.
Understand the costs involved
Choosing the right location is key, as rent can make or break your budget. Consider looking just outside prime areas first (where rents tend to be more affordable), then move downtown as you grow. For example, the average cost of a retail space in London is around £49.64 per square foot per year while in Blackpool, you can get the same for just £12.45.
For more information about current property rental prices in the UK, visit Rentola. This user-friendly platform lists a huge number of private property rentals, including houses to rent in Ellesmere Port. Not only is Ellesmere Port a thriving port town but it’s home to one of the largest discount shopping villages in England. It’s a sought-after destination for retail spaces, with both designer and high-street brands found at Cheshire Oaks. Currently, the average price of a commercial rental in Ellesmere Port is £62,750, compared to around £10,500 for a private home or apartment.
When searching at Rentola for a rental property in Ellesmere Port, simply input your search filters (price, location and property type), then browse the listing descriptions and images on the results page. At Rentola, you can chat directly with landlords about using a property to rent for business purposes and establish mutually beneficial tenancy agreements.
Most landlords require quarterly rent payments upfront on set dates, although monthly installments are becoming more common. A security deposit of three to six months rent is also required. Before signing a lease, factor in future rent hikes, which will be determined by the changing market.
Also keep in mind that you may need to pay “business rates” – a tax on any commercial space. This can add an extra 40% to your rent! Rates are calculated using the property’s value and a uniform business rate set by the government, with reassessments taking place every five years or so. High-value properties may incur additional fees while small businesses can apply for exemptions and save on rates.
Also worth keeping in mind are your own setup expenses, including moving costs and decorating the space to reflect your brand. Businesses should also factor in ongoing expenses, such as maintenance, repairs and insurance, not to mention utility costs. Remember, rent and utilities will need to be paid, even if seasonal demand is challenging profits.
Negotiate a commercial tenancy agreement
Depending on your business needs, you’ll have to sign either a lease agreement or a licence.
A lease is a legally binding contract that locks you and your landlord together for the long haul. It should outline the lease length and any break clauses, as well as the rent amount and any rent-free periods. Also detailed within a lease agreement are when and how the rent can be increased, how the utility bills are to be paid, and who is responsible for maintenance and repairs. Before signing a lease, always scrutinise the fine print so you don’t get stuck in a contract you later regret.
If you’re a startup or only need a space temporarily (6 months or less), go for a licence. These are preferred by pop-up shops, co-working spaces and some warehouses. The licence fee is like rent but more flexible – it can be paid monthly or even weekly, depending on the landlord. Just keep in mind licences aren’t renewable, so you’ll need to move on when it ends.
The choice between a lease and a licence depends on your business plans. Do your homework to pick the right option and avoid signing a contract you’ll later wish you could end.
Seal the deal
After your commercial agent and lawyer have reviewed the property and sales contract to ensure everything looks good, it’s time to make it official by exchanging contracts. Once this has occurred, the deal is legally binding. Then, it’s time to get the keys to your new business space and get to work!
