Commercial Property Solicitor: Free Consultation
How to Negotiate a Rent Free Period
A rent free period is period of time during your lease where you don’t have to pay any rent at all. Although rent free periods usually kick in at the start of the lease, you might find them at other points during the lease term.
When negotiating a rent free period in a commercial lease try to milk the following points as much as you can to get your landlord to offer as large a rent free period as you can get away with.
Recent Customer Review (30 October 2023): 'James was excellent. Thorough, helpful and very professional throughout. Fees were made clear from the beginning and no hidden extras.' Read more >
- 1) A Juicy Carrot
- 2) Compensation for Disrepair
- 3) Compensation for Breach Of Statutory Regulations
- 4) Compensation for Fit-Out Works
- 5) Compensation for Loss of Business
- 6) Helping You Get Started
- Don’t Ask, Don’t Get
For this reason, it can be helpful to talk to a local agent or surveyor who’s used to negotiating rent free periods for similar properties in the area, as they may have a good feel for what a ‘normal’ rent free period for the property you’re after might be.
The bottom line is, if prospective tenants aren’t queuing up to lease the Property you’re interested ask for a rent free period simply as a sweetener to convince you to sign up.
You should be able to appreciate how useful a surveyor or builder can be here, as they will be able to point out all the repair works that will need to be carried out and their cost. This will put you in a much stronger bargaining position when you get back to the Landlord.
For example, if a Property needs an additional fire escape door and staircase to be added in order to comply with fire regulations, at a cost of £10,000, and the rent is £2,000 a month, a 5 month rent free period might be reasonable.
Here, you most probably will need specialist advice on what remedial works are needed and their likely cost.
Note, however, that it’s usually difficult to argue that the Landlord should cover all of the fit-out costs and the rent free period is sometimes simply an acknowledgment of the tenant’s cost and commitment. A landlord might be more swayed to grant a larger rent free period if the fit out works enhance the value of the landlord’s building or estate in some way, or if they might be of permanent value to the Landlord after your lease has ended.
As with all bargaining, start with a rent free period that you know to be on the high side and work down from there. We will be happy to advise you on negotiating a rent free period in your commercial lease. If we can't get you a rent free period, we can look at possible unfair rent clauses.
Why Choose Bartletts Solicitors?
Solid Traditional Values Delivered
in a Modern Convenient Manner
Our firm has years of experience in commercial property matters across England and Wales.
Benefit from competitive fixed fees, a free no obligation quotation and no hidden costs.
Our solicitors are very experienced having worked at the firm for an average of 18 years.
Bartletts Solicitors was managed by John Bartlett for over 40 years, the last 25 of which he was assisted by Trevor Morris. Trevor is now the managing director, representing continuity for the firm’s traditional values and customer satisfaction ethos.
Send Our Commercial Property Law Team an Enquiry:
(or give us a call on 0151 227 3391)
Commercial Property Solicitors:
Commercial Lease Information:
-
Negotiating Commercial Lease Terms
How to Negotiate a Rent Free Period
The Risks of Being a Guarantor on a Commercial Lease
How Can a Tenant Exit a Commercial Property Lease?
Stamp Duty on Commercial Property Leases
Is it Possible to End a Commercial Lease Early?
Commercial Property Conveyancing Solicitors
Evicting Squatters From Commercial Property
Commercial Property Solicitors: How We Can Help
We also have dedicated pages covering the following lease types:
Warehouses, Industrial Units, Dark Kitchens, Offices, Hair Salons, Clothes Shops, Restaurants, Surgeries, E-Cig Shops.
Related Trustpilot Reviews:
Bartletts is proud to support a number of public bodies and charities, including Liverpool Cathedral, National Museums Liverpool, the Walker Art Gallery and Zoë’s Place Baby Hospice. You can find out more on our blog or on social media.
“I was delighted Bartletts Solicitors continued their tradition of philanthropy with Liverpool Cathedral this year. Thank you so much for your generous gift.” - The Dean of Liverpool, The Very Revd Dr. Sue Jones (Dec 2020)