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Commercial leases for landlords
Commercial lease solicitors for landlords
As a commercial landlord, your lease is what protects your investment. We draft and negotiate leases that set out clear tenant obligations and give you practical remedies if things go wrong.
A lease that protects your investment
From the first heads of terms to the end of the lease, we make sure your property and income are protected.
How we help landlords
A commercial lease gives the tenant the right to use your premises for business purposes for a fixed period in return for rent. It also sets out the rights and obligations of both landlord and tenant. Getting it right protects both your income and the value of your property.
We advise on the leases you need, draft them on your behalf, and review and negotiate the tenant’s comments. We can also negotiate the heads of terms before the lease is drafted. Every lease is negotiated, and the terms depend on your commercial objectives and the type of property, from a single shop to a multi-let building.
How commercial leases differ from residential ones
The main difference is the purpose. A residential tenancy is for a home, while a commercial lease is for business premises. The law also treats them differently. Commercial leases are seen as agreements between experienced business people, so tenants have far fewer statutory protections and the courts are less willing to step in if a tenant later thinks the terms are unfair.
That gives landlords flexibility, but it also means the lease itself has to do the work of protecting you.
What your lease should cover
- The premises and any shared parts
- The length of the lease
- Rent, payment dates and interest
- Rent review arrangements
- Permitted use
- Repair and decoration
- Service charge
- Insurance and reinstatement
- Alterations by the tenant
- Assignation and sub-letting
- Break options and their conditions
- Guarantees and rent deposits
- Irritancy
- Notice to quit
Protecting your rental income
Before you agree terms, it is sensible to check the tenant’s financial strength. For newer businesses, you may want a personal or parent company guarantee, or a rent deposit held under a rent deposit agreement.
We usually register the lease in the Books of Council and Session. If the tenant falls behind with rent, this allows summary diligence, so you can enforce the debt without first raising a court action. Where the breach is serious, the lease can also be ended by irritancy, provided the correct warning notices are served.
If a tenant enters a company voluntary arrangement or another insolvency process, we can advise on your rights and how to protect your position. Read our guide to CVAs for landlords.
Schedules of condition and dilapidations
A schedule of condition is a photographic record of the property’s condition at the start of the lease. It is usually requested by the tenant to limit their repairing obligations to that condition, so landlords should think carefully about agreeing to one, particularly in a full repairing and insuring lease.
A schedule of dilapidations is different. It is prepared towards or at the end of the lease to list the repairs the tenant has failed to carry out, and forms the basis of a claim for the cost.
At a glance
- We handle
- Heads of terms, leases, guarantees, rent deposits and licences
- Security
- Guarantees, rent deposits and registration for summary diligence
- Remedies
- Irritancy, debt recovery and the landlord’s hypothec
- End of lease
- Notices to quit, dilapidations and renunciations
Letting a property, or dealing with a difficult tenant? Tell us about it and we will explain your options.
Book a free* consultation0141 471 9166*Free initial consultation of up to 30 minutes.Letting your property
- Heads of termsWe help you agree the main terms with the tenant or their agent.
- Tenant checksWe consider the tenant’s covenant and whether a guarantee or deposit is needed.
- Draft and negotiateWe prepare the lease and negotiate the tenant’s comments.
- Complete and registerThe lease is signed, registered where appropriate and the tenant takes entry.
Questions we are often asked
Should I ask for a rent deposit or a guarantee?
It depends on the tenant. A new or small business may be asked for either or both. We will advise on what is reasonable and enforceable.
What can I do if my tenant stops paying rent?
Options include summary diligence, a court action for payment and, if the arrears are not paid after notice, irritancy of the lease. The landlord’s hypothec can also give you priority over certain of the tenant’s goods if the tenant becomes insolvent. See our lease disputes page.
Can I stop my tenant assigning the lease?
Most leases allow assignation only with the landlord’s consent. The lease can set conditions, such as the new tenant being of equal financial strength.
Who is responsible for repairs?
It depends on the lease. Many commercial leases are full repairing and insuring, putting the cost on the tenant. In multi-let buildings, shared areas are usually repaired through a service charge.
Can I end the lease early if I want to redevelop?
Only if the lease gives you a break option or the tenant agrees to a renunciation. We can include a redevelopment break when the lease is granted.
Your legal team
Senior solicitors on every matter
Your matter is handled by experienced solicitors who know Scots business law and will explain your options in plain English.
Billy Smith
Director and Solicitor. Set up the firm in 2010 to deliver legal services better.
Emma King
Director and Solicitor. Joined in 2011 and keeps the firm’s service excellent.
Scott Stevenson
Associate Director. Calm, composed and logical under pressure.
Ciara Young
Associate Director. Trained with the firm from 2019.
Not sure who you need?
Tell us about your matter and we will put you in touch with the right solicitor.