The Complete Guide to Renting a Commercial Property The Complete Guide to Renting Commercial Property | Page 6
The Complete Guide to Renting a Commercial Property
Rental Costs, Business Rates and Other Fees
There are a number of different costs you are likely to incur when renting
commercial property, and we're going to cover them in this section. Any
or all of these costs may be relevant to you, so it's important to do your
research when taking on a commercial lease.
Rental Costs
This will obviously be your largest expense when leasing property. For smaller or start-up
businesses, it's often wise to have a guarantor for your rent; if you're unable to get one, then a rental
guarantee will probably be required. This works in much the same manner as a traditional deposit the guarantee will be deposited into a locked account which the landlord will be able to draw from if
you do not fulfil your obligations.
Commercial rent is normally paid quarterly in advance on the following quarter days: March 25th,
June 24th, September 20th and December 25th. Any additional costs (which we'll cover further
down the page) will also be due at this time.
REMEMBER: These payments are due whether or not you receive an invoice, and it's your
responsibility to ensure they're paid by the due date. Additional charges can be substantial, and
your landlord will be entitled to make them under the lease. In other words: make sure you pay your
rent on time.
Professional Fees
These are a standard part of obtaining any lease. Using a surveyor is particularly wise, especially if
you're planning on a longer term lease. However, surveyors aren't always cheap: they can be up to
ten percent of the annual rent, and disbursements and VAT can be included on top of this.
Business Rates
These are calculated according to the rental value of the property. The evaluations carried out by
The Valuation Office Agency (VOA) and are revised every five years. (We've covered business
rates in more depth in our article – A Guide to Business Rates). Scotland has its own system called
Non-Domestic Rates. The most recent revisions in both countries were in 2010, so 2015 will see
new ones made.
Commercial Property – Industrial Units, Office Space to Rent
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