A consultation has been launched for businesses to have their say on a proposed new code to ensure businesses in the East Midlands gain fairer, flexible leases.
The Royal Institution of Chartered Surveyors (RICS), has developed the new mandatory requirements alongside major industry bodies in the region.
Professionals and interested parties in the East Midlands now have until April 12 to have their say on the consultation’s recommended requirements.
Lease negotiations and rent reviews can be a complicated process between landlords and tenants of commercial property, and in some cases, can lead to a dispute between parties.
RICS’s proposed mandatory requirements, known as the Code for Leasing Business Premises, aim to ensure both parties are armed with the relevant information necessary to negotiate the fairest rent agreement and lease terms available to them.
The Code for Leasing Business Premises not only provides tips for tenants, it also provides guidance for landlords on how to be ‘code-compliant’ to ensure they too, benefit from a more transparent lease with greater flexibility in its terms.
Measures include clearly stating in the lease agreement the proposed duration of the tenancy, rent review dates and upfront details of service charges a tenant is liable for.
Paul Bagust, RICS Global Property Standards Director said: “This new code sets out mandatory requirements that will ensure fairness and transparency for all parties in lease negotiations and rent reviews.
“We’d welcome any feedback from property professionals and interested parties, as these mandatory requirements will not only serve to improve standards in the industry, but also raise more awareness of commercial property issues, especially among smaller businesses.”
To respond to the RICS Code for Leasing Business Premises and to find out more, click or tap here.