subject: Your One Stop Guide For Your Responsibilities As A Commercial Landlord [print this page] Your One Stop Guide For Your Responsibilities As A Commercial Landlord
If you are the landlord of a commercial property, it is crucial that you understand the responsibilities that you have to your tenants. Under the law and under the terms of the lease, you will have many duties to fulfil in terms of health and safety requirements and with regard to the upkeep of the building. Whilst many of these responsibilities will be shared between you and your tenant(s), our guide outlines some of the most important things you should be aware of as a commercial landlord.Health and safety is the number one priority of commercial premises, as this is where the largest risk lies. The last thing you need is for a part of the building not to be maintained and for an accident to occur as a result, as this could end up in a costly court case. Commercial leases differ from residential leases. Under a residential tenancy the onus is often very much on the landlord to comply with any regulations, whereas under a commercial lease the tenant is generally responsible for much of the health and safety compliance, even if you hold the commercial mortgage.The contract determines who holds the duty for electrical safety, and this would normally be the tenant when it comes to electrical equipment used within the building, although the landlord will usually have to take responsibility for any electrical items that cover the whole building such as wiring.Fire safety is a good example of shared responsibilities, the law generally takes the view that it is everyone's responsibility to safeguard against fire and to provide safe evacuation in the event of one. In a multiple tenancy, the individual tenants have responsibility for the areas that house their employees. However, you (as the landlord) or the managing agent are legally required to ensure that fire regulations are complied with on communal staircases. One of your key duties will be to make sure that fire alarms, sprinkler systems and extinguishers are all in working order, involving regular checks.The landlord has the duty of ensuring that all communal areas are safe in relation to fire safety regulations, however it is down to the tenants to look after their own individual offices, so they must ensure that fire doors are unobstructed, for example.Energy Performance Certificates (EPCs) are something that the landlord must also provide the tenants with before they lease the property, as this indicates the energy efficiency of the premises and it is also useful as it recommends ways to increase the efficiency saving on bills and reducing the carbon footprint.Don't forget also that you need to ensure that your business loan and commercial mortgage is paid regularly and in a timely fashion. Manage your income from rent and your cash flow carefully to ensure that you don't end up in commercial mortgage arrears.The division of responsibility for the upkeep of the commercial property itself is likely to be your final concern. Again, the duties are generally shared between landlord and tenant, with the tenant usually responsible for internal repairs and maintenance. The landlord will generally be responsible for external repairs or maintenance to communal areas or areas for which a service charge is payable (upkeep or a car park or grounds, for example).The advice is to make sure that you know your contract, and so do your tenants. Ensure that responsibilities are discussed prior to the tenants occupying the property to avoid later disputes. Also make sure that your contract sets out who takes responsibility for certain things like electrical safety.
