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. 

Landlords have been receiving some fairly unfavorable press recently. The housing crisis, particularly in London, is deepening, and more and more millennials and renters are being left in difficult scenarios, with many struggling to make ends meet.

Because of the vulnerable position many are finding themselves in, a number of ‘rouge landlords’ have been offering rooms up to cash poor individuals in exchange for sexual favours and close company. It’s scandalous, shameful and is telling of just how far this crisis has gone.

While the majority of landlords are noble and are offering a transparent service to renters, it’s still vitally important that they adhere to certain rules and regulations. So, what does a landlord need to do in order to stay on the right side of the law?

Gas safety

It is imperative that any property that has gas appliances undergoes the appropriate annual gas safety checks. These will need to be conducted by a gas fitter or engineer who is and the check must have been carried out within the 12 months before the new tenant takes up occupation.

Licensable HMOs

If a landlord owns a property that is part of a multiple occupation e.g. bedsits, shared houses or a shared flat, it may be necessary for a HMO license to be obtained from the local authority. It is important that landlords make contact with local authorities to check which licensing requirements are applicable to them and their property.

Electrical inspections

Properties that are in a house of multiple occupation of any kind will need a five year electrical safety check to be carried out by a component electrician, even in circumstances where a license is not required. Properties that this covers includes shared houses, flats in multiple occupation, bedsits, hostels and certain converted blocks of flats.

Prescribed information to tenants in England

It is now the law that tenancy landlords are required to provide a timely copy of How to rent: a checklist for renting in England. If a landlord fails to do this, they will not be able to serve a valid section 21 notice in England.

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