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• Be certain of what you are trying to achieve.
• Allow enough time to negotiate.
• Take the initiative and don’t let the landlord take control.
• Think about what information the landlord will need about you and have it ready. If you cannot provide three years accounts what guarantees can you provide to the landlord that you will cover the rent.
• Find out as much as you can about the property before submitting a proposal.

• If a multi-let property, check out what other tenants in the building have to say.
• Find out what other deals have taken place.
• Don’t commit until you know all you need to.
• Negotiate hard for the most flexibility you can get – either a short lease or a lease with tenant’s options to break.
• Don’t accept a lease that is contracted out of the security of tenure provisions of the Landlord and Tenant Act unless there is no alternative: you will lose the right to stay when the lease expires.
• Get the property checked out by a surveyor to ensure you won’t be hit for big repair bills.
• Get the landlord to commit to remedying any defects and consider agreeing a schedule of condition.
• Make sure the landlord will consent to your required alterations by providing details before you sign up.
• Be sure that you can use the premises for the purposes you have in mind.
  If you are taking space from an existing tenant, ensure they pay you for taking on their responsibilities, unless the space is absolutely in perfect condition. Also be sure you get a copy of their lease.
• Understand how the property is being managed. What the service charge is now, and what is it expected to be?
• Remember to allow for Stamp Duty Land Tax costs and lawyers’ fees and VAT, if not recoverable.

Try to ascertain the landlord’s stance on meeting occupier’s needs. How keen do they appear to listen? Do they follow the Code of Practice for Commercial Leases in England and Wales?

Exchange a letter with the landlord, to set out what you have agreed, with a minimum of:

• Landlord’s identity.
• Tenant’s identity and what information the landlord requires on the tenant.
• Guarantee– what the landlord requires: e.g. bank or personal guarantee, or rent deposit, and what circumstances will enable the guarantee to be released.
• Demise– what the premises consist of.
• Lease– the duration of the term and its start date.
• Rent– the annual rent, plus VAT, and how frequently it will be paid (usually quarterly).
• Rates– who is responsible for payment of business rates.
• Service charge – how is it paid, what does it cover, etc.
• Inducements – any concessions you will receive for entering into the lease e.g. a rent free period, a lump sum contribution towards your fit-out costs, or work carried out for you by the landlord at his cost. You should expect more than just an allowance for you to install carpets at the landlord’s expense, where these are missing or damaged.
• Insurance – the landlord is usually responsible for insuring the premises and passing the cost on to the tenants. Has the landlord modified his insurance provisions to comply with the Code of Practice?
  Check that the landlord will allow your fit-out contractors, if you need them, to be covered under the buildings insurance. If not – highly likely – make sure that any contract you enter into with your fit-out contractors does not make this an unachievable obligation for you.
• Rent reviews - make sure the landlord complies with the Code of Practice for Commercial Leases. Are you being offered an alternative to upward only rent reviews? Can you agree a fixed review or would it be beneficial to link your rent to the Retail Price Index?
  Repairs and dilapidations – who is responsible for repairs and what happens if the premises are not repaired at the end of the lease.
• Alterations – what is permitted and what can the landlord object to.
• User – what is permitted and prohibited.
• Reinstatement – what happens at the end of the lease in relation to any alterations you have carried out.
• Alienation – what happens if you want to assign or sub-let the premises, or hand them back to the landlord.
• Legal costs – who is responsible for paying these (the landlord should pay his own).
• Other terms and conditions – make sure the agreement is subject to contract, any board approvals required or other conditions such as completion of satisfactory due diligence building surveys.