There are a number of different commercial property lease costs
that you'll need to plan for. Any or all of these costs may be
relevant to you, so it's important to do your research when taking
on a commercial lease.

Rental costs

This will obviously be your largest expense when leasing
property.  For smaller or start-up businesses, it's often wise
to have a guarantor for your rent; if you're unable to get one,
then a rental guarantee will probably be required. This works in
much the same manner as a traditional deposit - the guarantee will
be deposited into a locked account which the landlord will be able
to draw from if you do not fulfil your obligations.

Commercial rent is normally paid quarterly in advance on the
following quarter days: March 25th, June 24th, September 20th and
December 25th.  Any additional costs (which we'll cover
further down the page) will also be due at this time.

REMEMBER: These payments are due whether or not
you receive an invoice, and it's your responsibility to ensure
they're paid by the due date.  Additional charges can be
substantial, and your landlord will be entitled to make them under
the lease. In other words: make sure you pay your rent on time.

Professional fees

These are a standard part of obtaining any lease.  Using a
surveyor is particularly wise, especially if you're planning on a
longer term lease.  However, surveyors aren't always cheap:
they can be up to ten percent of the annual rent, and disbursements
and VAT can be included on top of this.

Business Rates

These are calculated according to the rental value of the
property. The evaluations carried out by The Valuation Office
Agency (VOA) and are revised every five years.  (We've covered
business rates in more depth in this article HERE).  Scotland has its
own system called Non-Domestic Rates.  The most recent
revisions in both countries were in 2010, so 2015 will see new ones
made.

Other likely costs

Local authority costs such as parking and waste
collection.

Insurance. Contents insurance is a must for any
company looking to protect its resources. In some cases, you may
also be held responsible for paying the building insurance, but be
sure to check it.

Running costs and services charges. Much as you
would be within a residential property, you will likely be held
responsible for paying bills on things like electric, gas, internet
and other services.

EPC (Energy Performance Certificate). It's a
legal requirement for any commercial property to have an EPC before
the lease is completed unless you're entering into a license or
renting serviced office space.  Double check to ensure you
won't be held responsible for paying these costs.

Deposits. This is usually the equivalent of
three to six months' rent.

VAT. Some buildings have been elected for VAT,
which will mean that you are required to pay VAT on rents and
service charges.  Again, establish this upfront.

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