This cheatsheet includes practical tips to understand key clauses and avoid disputes in leasing agreements.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n A potential problem you could encounter when committing to a commercial lease is that your business runs into hardship. Where you struggle to make a profit, this will affect your commercial lease and your ability to pay your rent. While you juggle between paying wages, insurance, stock, and other business expenses, meeting your rent obligations can be challenging.<\/p>\n\n\n\n Since commercial leases are often for a fixed term, you will have limited options to end your lease early<\/a>. This means you must pay the rent until the lease expires. Likewise, leaving your lease might not be ideal, and it will further impact your customer\u2019s ability to visit your business. <\/p>\n\n\n\n If your business does face financial problems, it is best practice to communicate with your landlord. Together, you might agree to temporary solutions that benefit both parties. Indeed, your landlord would likely prefer you stay in the lease, so they can avoid the struggle of finding a new tenant. One solution would be to negotiate a rent reduction<\/a> when you are due to renew your existing lease agreement. You might also consider subletting part of your commercial lease to another business, to help provide you with extra income to meet your rent payments. Finally, if your business\u2019 financial situation becomes dire, you might rely on a break clause<\/a> in your lease to terminate the lease early. <\/p>\n\n\n\n Your lease agreement may include a rent review clause. This clause allows your landlord to review the rental amount you pay, commonly every five years. Most of the time, this will increase as a result. There are different methods for rent reviews, such as an open market rent review<\/a>. <\/p>\n\n\n\n A potential problem a commercial tenant may face with their lease is disagreeing with the rent level after a rent review. You might feel the new amount is unfairly high or not reflective of what it should be. Where it is an open market rent review and the new amount does not reflect the actual open market value of your business premise, it will automatically be invalid. <\/p>\n\n\n\n Your lease agreement should detail how you deal with a rent review dispute. Usually, this will be through an independent third party, such as an expert or arbitrator. If they do not resolve the dispute before your following rent is due, you would continue paying the current rate. Then, you would need to pay any difference once the dispute is resolved.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n1. Business Problems<\/h2>\n\n\n\n
2. Rent Review Disagreements <\/h2>\n\n\n\n
![\"Front](\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/05\/04050959\/LegalVision-Landlords-Cheatsheet-for-UK-Leasing-Terms.jpg\")
\n Cheatsheet for UK Leasing Terms<\/div>\n
\n