Renting property is something that most SMEs and start-ups will need to do and renting a building for work-related purposes comes with its own set of intricacies and challenges.

When you sign a contract for a rented property, you enter into a lease with the owner of the property and will subsequently need to do certain things in order to satisfy what they will expect from you.

If you have never rented a property for a business, consider this your indefinite guide.

What is a lease agreement?

As mentioned above, signing a contract will mean that you enter into a lease agreement. This will set out the rights and obligations of every party that is involved. Terms that you can expect to be in a lease include:

•  Lease term. This can be anywhere between three and five years, but could be as long as 30. Much shorter leases are generally harder to secure.
•  The notice period to end the contract, including break clauses, which will allow you or the landlord to terminate the contract early.
•  Signing of the lease. Once signed, a lease becomes a legally binding document, so it’s a good idea to have your solicitor cast their eye over it before you put pen to paper. 

What are your responsibilities as a tenant?

Once the contract has been signed, the landlord will expect you to adhere to the terms in order to maintain the integrity of the property. This will include, amongst other things:

•  Making sure that the property is insured (unless this is the landlord’s responsibility).
•  Keeping the internal structures of the building safe and sound.
•  Complying with health and safety and fire regulations. 

Maintenance and repairs 

Once you become the tenant of a rented property, you will need to maintain and repair certain aspects of the building. This can be split into three sections:

• Before you move in – when you move in, the building should be in a fit state. If it is not and things need repairing, you will need to prepare a photographic Schedule of Condition.
• While you are the tenant –make sure that your landlord provides you with the relevant information about your responsibility to carry out maintenance and repairs.
• At the end of the lease – the property will need to be in a reasonable condition when you leave it. 

Costs incurred with renting

Renting property doesn’t come cheap and there are a number of costs involved that you might not have even considered.

• Legal fees – you will need to get a solicitor to check lease agreements before you sign.
• Rent and rates – you might be required to pay a deposit, which could be up to 6 months’ rent in advance.
• Service charges – these apply to multi-occupancy buildings. 

Whether you’ve heard of the flat white economy or not, it’s a notion and idea that has, for some years, been changing the landscape of business and development in the UK, and things could be set to shift even further.

The phrase was originally coined by Professor Douglas McWilliams in his book, The Flat White Economy: How the Digital Economy Is Transforming London and Other Cities of the Future, but what does it really mean and how much of an impact is it likely to have on the future of business?

Where does the phrase come from?

You may be able to work it out for yourself, but if not we’re here to spell it out for you anyway. The flat white economy refers to the millennial generation of young workers that are operating in sectors such as media, internet and creative business.

In terms of characteristics, they have been defined as having traits similar to what many of us consider to be ‘hipsters’. They are greener and more ethical, are less concerned with materialistic belongings and are, according to some, set to represent the future of British prosperity.

Could this be true? Is the rise of digital and its associated players going to be what will matter for business in the future?

Forecasting trends

It has been suggested that by 2025, the Flat White Economy will contribute 15.8% of GDP, which would make it the single largest sector in the whole of the UK.

While the rise in digitalisation means that this suggestion isn’t entirely implausible, it’s also important to consider the fact that forecasting digital trends so far in advance is tricky. The industry is constantly changing and adapting, so how can we possibly know what will happen in so many years’ time?

How the Flat White Economy can benefit businesses

If you look to Old Street in East London, cheaper rental spaces meant that internet-based start-ups were attracted, which in turn resulted in more coffee shops, bars and restaurants.

The spending habits of millennials, or more specifically their habits regarding saving, means that more young people are choosing to spend their money on experiences, for example brunches and nights out in trendy bars, as opposed to saving.

This is good for both the economy and businesses, as it encourages creativity and forces business owners to strive for more excellence.