The law dictates a number of duties that you must take responsibility for as a landlord of a commercial property. From health and safety to maintenance of the building, there are a few things that you are legally liable to do on business premises.
Often there are areas of responsibility for the upkeep of a property that are shared between landlord and tenant. Landlords must be careful to ensure that communal areas such as stairwells, landings and courtyards are kept clean. These are also areas that are essential conduits in the event of a fire and so fire safety maintenance by the landlord is also mandatory.
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.
Many commercial landlords believe they must ensure that gas safety checks are undertaken, but it is actually the responsibility of the tenants under the Gas Safety Regulations 1998. The tenants must also ensure that any gas or electrical equipment is maintained and regularly serviced by an engineer who is not only qualified but also registered with the relevant authorities.
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.
Fire safety is another responsibility that is shared between the tenants and the landlord. If a building is occupied by several businesses or tenants, you as the landlord must ensure that communal areas are maintained in accordance with fire safety regulations, but the tenants will be responsible for their own areas such as a fire door out of the office.
New regulations have given you as the commercial landlord another responsibility. An Energy Performance Certificate (EPC) must be provided to the tenants, and gives details on energy efficiency of the building. The EPC is useful to you as the landlord also, because it also recommends way to make your energy efficiency better, which can help to cut utility bills and contribute to a greener environment.
One of the most important duties as the landlord is to keep up with your commercial mortgage. Failure to pay could mean that your property is at risk, which of course would also adversely affect the business who lease the property as they would have to relocate which can be costly.
Another responsibility is maintenance and repairs, usually only on the exterior. You should always ensure that the roof, outdoor plumbing and things of that nature are taken care of.
Unlike residential tenancy agreements, the duty of care under a commercial lease is often on the tenant, not the landlord. Even if this is the case, it is recommended that you set out both your and your tenants responsibilities in a lease or other contractual agreement before the tenancy begins.
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