{"id":182242,"date":"2023-07-26T03:14:30","date_gmt":"2023-07-26T02:14:30","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=182242"},"modified":"2023-07-28T11:27:31","modified_gmt":"2023-07-28T10:27:31","slug":"tips-avoid-outgoings-lease-dispute","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/tips-avoid-outgoings-lease-dispute\/","title":{"rendered":"Three Tips to Avoid a Leasing Dispute Over Outgoings"},"content":{"rendered":"\n<p>A commercial lease dispute often arises due to misunderstandings around outgoings. The term \u2018outgoings\u2019 in a <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/key-steps-lease\/\">commercial lease<\/a> typically refers to the costs and expenses connected to the leased premises. The outgoings are those which concern, for example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>rent;<\/li>\n\n\n\n<li>service charges;<\/li>\n\n\n\n<li>building insurance; and<\/li>\n\n\n\n<li>repairs.<\/li>\n<\/ul>\n\n\n\n<p>Unfortunately, lease disputes can arise regarding outgoings in a commercial lease. In a worst-case scenario, one party might commence litigation against the other to resolve the lease dispute. This article will explain three essential tips to prevent a leasing dispute over outgoings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. A Clear Lease Agreement<\/h2>\n\n\n\n<p>Commercial lease disputes involving outgoings often relate to the payments a tenant makes as part of the lease. The tenant\u2019s payments, in turn, affect the landlord\u2019s outgoings for the property. For example, a commercial tenant may pay a service charge for the upkeep of shared areas in the commercial property. The tenant\u2019s service charge will then reimburse the landlord for the costs they pay to ensure contractors maintain these areas.<\/p>\n\n\n\n<p>Lease disputes over outgoings are easy to prevent. If your lease agreement is clear as to the outgoings your tenant must pay, there is likely to be no dispute. Disputes often arise at the end of a lease when a tenant is expected to pay the landlord\u2019s dilapidation claim. These disputes arise because, often, the tenant is unaware of what repairs can be included in this dilapidation claim.\u00a0<\/p>\n\n\n\n<p>Subsequently, you should make sure your commercial lease agreement is as clear as possible. Clarity will:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ensure that each party to the lease understands what they need to pay and when;<\/li>\n\n\n\n<li>ensure that the outgoings were agreed to in advance as each party signs the commercial lease agreement at the start of the lease term;<\/li>\n\n\n\n<li>provide evidence of both the above and a reference tool should an issue arise, preventing it from turning into a lease dispute.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">2. Good Communication Between Parties<\/h2>\n\n\n\n<p>To avoid a lease dispute outgoings, you should maintain good communication with your landlord or tenant throughout the lease term. Good communication means that parties to the lease discuss issues concerning the outgoings. They can address and resolve them as they arise before they become a lease dispute. If you let these issues build up, they can get out of control.<\/p>\n\n\n\n<p>For example, if the shared area is dirty or untidy, a tenant may refuse to pay the service charge. Rather than refusing to pay, a tenant should communicate with their landlord to notify them of the issue. This act is likely to reduce the propensity for a lease dispute. The landlord may simply have not even been aware of the issue. Upon the issue being brought to their attention, they could instruct their contractors to fix the issue.\u00a0<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    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Accurate and Up-To-Date Documenting<\/h2>\n\n\n\n<p>Our third essential tip to avoid a leasing dispute over outgoings is that you can never document enough. Your recording and keeping evidence of any outgoing issues concerning your commercial lease provides extra clarity and evidence. This evidence is useful should a problem arise in the commercial lease. It is crucial you have clear documents to back up facts and evidence relating to the commercial lease. You can refer back to these documents if a question arises or if a problem begins to emerge. Consequently, you may be able to resolve the issue before it becomes a lease dispute.&nbsp;<\/p>\n\n\n\n<p>These documents are crucial to avoiding a lease dispute over outgoings. Here are some examples of how you can document any matters, developments or incidents relating to your commercial lease:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>create a schedule of conditions at the start of your lease to accurately record the exact state of the property in terms of any potential repairs that the tenant must complete;<\/li>\n\n\n\n<li>take photos and videos of the commercial premises in connection with the above but also in terms of any new issues which arise, such as new repairs or problems with something working correctly in a shared area which the tenant pays a service charge for; and<\/li>\n\n\n\n<li>collecting evidence of the market value of properties in the same area before a <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/fair-rent-review\/\">rent review<\/a> to demonstrate the typical value of properties in the area to avoid any discrepancies between your and the other party&#8217;s opinion of what the rent should be.&nbsp;<\/li>\n<\/ul>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/05\/04050959\/LegalVision-Landlords-Cheatsheet-for-UK-Leasing-Terms.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Cheatsheet for UK Leasing Terms<\/div>\n            <div class=\"body-text\">\n                <p>This cheatsheet includes practical tips to understand key clauses and avoid disputes in leasing agreements.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/cheatsheet-uk-leasing-terms.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Whether you are a commercial landlord or commercial tenant, you will incur costs associated with the commercial property. These are your outgoings in the commercial lease. Parties to a lease should always try to avoid a <a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/steps-lease-dispute\/\">lease dispute<\/a>, and outgoings can be a reason for one to occur. This article has provided three critical tips so you can avoid a lease dispute over outgoings. Firstly, a clear lease agreement clarifying the obligations regarding outgoings is critical. This will likely reduce any conflict between you and your landlord. Secondly, maintaining good communication with your commercial landlord or tenant is crucial. Good communication oftens helps to avoid any lease disputes over outgoings. Thirdly, you are also well advised to keep accurate and up-to-date documentation to avoid a lease dispute.<\/p>\n\n\n\n<p>If you need help understanding how to avoid a lease dispute over outgoings, contact our experienced <a href=\"https:\/\/legalvision.co.uk\/leasing-lawyers-lp\/\">leasing lawyers<\/a> as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions <\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1690336672129\"><strong class=\"schema-faq-question\">What is a commercial lease?<\/strong> <p class=\"schema-faq-answer\">A commercial lease is a legally binding contract between a business owner and a property owner. This agreement allows you, as the business owner, to occupy the property owner\u2019s property in exchange for rent.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1690336689459\"><strong class=\"schema-faq-question\">What are outgoings in commercial leases?<\/strong> <p class=\"schema-faq-answer\">Outgoings in a commercial lease are the costs an occupier or owner incurs in connection with the commercial premises.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/182242\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/tips-avoid-outgoings-lease-dispute\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Three Tips to Avoid a Leasing Dispute Over Outgoings\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A commercial lease dispute often arises due to misunderstandings around outgoings. The term \u2018outgoings\u2019 in a commercial lease typically refers to the costs and expenses connected to the leased premises. The outgoings are those which concern, for example: Unfortunately, lease disputes can arise regarding outgoings in a commercial lease. In a worst-case scenario, one party<a href=\"https:\/\/legalvision.co.uk\/commercial-lease-property\/tips-avoid-outgoings-lease-dispute\/\">Continue reading <span class=\"sr-only\">&#8220;Three Tips to Avoid a Leasing Dispute Over Outgoings&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3111,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"3634,2400,2726,179196,173433,175385","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[30],"tags":[1224,1267,1335,1403],"class_list":["post-182242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-lease-property","tag-commercial-tenant","tag-commercial-landlord","tag-commercial-lease-agreement","tag-lease-dispute"],"acf":[],"yoast_head":"<!-- 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Prior to her freelance writing work, Clare worked for UK central government in policy and communication roles. She has also run her own businesses where she founded a magazine and was editor-in-chief. She is currently studying part-time towards a PhD predominantly in international public law. Qualifications: PhD, Human Rights Law (underway), University of Bedfordshire, Post graduate diploma, Law, Middlesex University.","sameAs":["https:\/\/www.linkedin.com\/in\/ms-clare-susannah-f-4a243545\/"],"url":"https:\/\/legalvision.co.uk\/author\/clarefarmer\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-lease-property\/tips-avoid-outgoings-lease-dispute\/#faq-question-1690336672129","name":"What is a commercial lease?","acceptedAnswer":{"@type":"Answer","text":"A commercial lease is a legally binding contract between a business owner and a property owner. This agreement allows you, as the business owner, to occupy the property owner\u2019s property in exchange for rent.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-lease-property\/tips-avoid-outgoings-lease-dispute\/#faq-question-1690336689459","name":"What are outgoings in commercial leases?","acceptedAnswer":{"@type":"Answer","text":"Outgoings in a commercial lease are the costs an occupier or owner incurs in connection with the commercial premises.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/182242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13326"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=182242"}],"version-history":[{"count":8,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/182242\/revisions"}],"predecessor-version":[{"id":182333,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/182242\/revisions\/182333"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3111"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=182242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=182242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=182242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}