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Have you spoken to the landlord? Workshop to do what?
We need full background please
Sorry, should have made it clear - I own a large workshop and am wondering what is involved in renting it out to someone else.
It really depends on whetheryou want to rent it out short-term or long-term.
If you want to rent it outshort-term then do it by way of a licence and if you want to let it out longterm, then do it by way of a lease.
The rule in law is that theoccupier of the building is responsible for anyone who is injured on it and ofthe building is not occupied, then it is the owner.
It is normal for proposedtenant to pay the legal cost of preparing the lease or the licence or at least,make a contribution towards it.
You might want to considertaking a rent deposit.
You would normally make it acondition of the lease or the license that the tenant pays for insurance butbecause they would not normally do it, you arrange the insurance and collectthe insurance premium as part of the rent.
Similarly with council tax,the council tax or business rates account is in the name of the tenant and ispayable by the tenant.
As you appreciate, there is alot to this and there have been volumes and volumes written on commercial leasesand the licences and therefore it is impossible to cram all that informationinto a few paragraphs.
Solicitor will charge between£500 and £2000 for drafting the necessary document depending on the size of thebuilding, and the rent.
I am happy to answer specificpoints.
Does that answer thequestion? I am happy to answer specific points.
Can I help further?
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I amoffline shortly until later today and will pick this up then
Thank you for your answer, that is really helpful. One further point: assuming that I can wait until there is a tenant before setting up licence or lease, would I then become permanently liable for a business rate tax on the workshop regardless of whether there was a tenant or not?
I don't know how it israted now.
The secret here is to makesure that the business rates of a liability in the lease or the license of thetenant. That way, the tenant remains responsible for the rates.
If the tenant fails to payrent, do not foreclose on the lease unless you have another tenant to going becausethe tenant remains liable for the rates.
I have a landlord client witha huge unit on which the rent is £40,000 per annum. The rates is £20,000 and hewas paying empty building rates. The building was empty for two years.
He has taken a tenant in whoI am of the opinion is unlikely to be a good tenant and he will struggle to getrent. He is not particularly bothered because it means that the council will bechasing the tenant for rates and not him.
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