Renting business premises

Your business is going well, you need more space or working from home is not practical then the next move is to have business premises of your own. Typically this is an exciting stage of your businesses development however there are some key financial considerations you need to take into account when renting premises

Your financial commitments when renting include:

• Rental costs – what rate per square foot will you be paying. Do your homework there is always a deal to be had.

• Service charges – for what, communal areas, car park or landscaping. Make sure there are no surprises

• Utility bills – are they included, if not look at the current supplier and shop around

• Maintenance and repair bills – is the lease tenant repairing or landlord repairing

• A deposit – usually payable and typically equivalent to three or six months' rent

• Stamp duty, which is payable on all commercial leases

• Business rates – another cost, make sure you are aware of the rateable value of your premises

Normally, the landlord will request references to confirm you are able to pay your rent and rates liability.

All landlords of commercial buildings are now obliged to provide prospective tenants with an energy performance certificate (EPC). An EPC indicates how energy efficient a building and its services are and can act as a good indicator of likely energy costs.

In particular, air conditioning systems and boilers can have a significant effect on your overall energy bills. You can make considerable savings by keeping these well maintained and having them regularly inspected by a qualified engineer.

Finally, and most importantly, before you sign a lease get it looked at by lawyer so you fully understand what you are committing yourself to. Getting your own premises is an exciting stage of growth for a small business but plan your costs and get it right....