Is Your Landlord Code Compliant?

When negotiating a lease you should always ask the landlord or their agent whether they comply with the voluntary codes of conduct that aim to promote fairness for tenants occupying business premises. In this blog I have summarised what these are all about.

1. Code for Leasing Business Premises -  www.leasingbusinesspremises.co.uk

This consists of 3 parts:
• 10 point list for landlords to follow
• Guide for tenants and occupiers
• Model heads of terms

You should be aware that although a landlord may say it complies with the code the actual lease drafted by the solicitor does not often reflect this and for that reason the tenant should always speak to a specialist commercial property lawyer so that it can be closely scrutinised and amended where necessary.

 
2. Service Charge in Commercial Property Code of Practice - www.servicechargecode.co.uk

This is important where the lease is for part only of a building. In this situation the landlord will be responsible for keeping the exterior, structure and any common areas maintained whilst recovering the costs from the tenants. Poorly managed service charges are a frequent cause of disputes between landlords and tenants, owners and occupiers.

Whilst the Code cannot override existing leases it provides the property industry with a clear set of
recommendations which if implemented will benefit all sides. When agreeing new lease documents I would recommend that you take proper advice to ensure the lease aligns with the Code.

Whilst the codes are a useful guide for tenants and occupiers, they are no substitute for professional legal advice. If you are in the process of negotiating a lease and want to make sure it complies then please contact  Steve Petty.

Steve Petty
Commercial Property Solicitor
01926 629 005