This guide will clarify certain issues you will come across when you are looking to find, rent or buy premises to house your creative business. It will provide: Lease checklist Things to consider Property terminology definitions This non-legal guide relates to finding, renting and buying property in Scotland. Please be aware that Scotland is a separate jurisdiction from England and Wales, and therefore has a separate legal system. The information provided does not constitute specific legal 1/11
advice and may not be relied on as such.
Introduction Firstly, check you have considered the following issues; •
Calculating your need and demand
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Negotiating small business relief
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Start-up costs
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Planning use codes
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Warrants
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•
Premises responsibilities
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Fire safety regulations
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Disability access
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Public access – security
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Maintenance responsibilities - general health and safety issues
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Rates
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Insurance 3/11
Lease checklist It is useful to have a checklist when approaching renting or purchasing a property for your business use. There may be other issues not covered by the lease, so in all circumstances it is always advisable to get the lease checked over by a legal professional if possible.
In the first instance, if the leasing landlord you have approached has
a proposed lease agreement that you can review, you may benefit from discussing this with our Legal Adviser.*
*This is a free service available to individuals and businesses in the creative industries, resident in Scotland. Please phone 0844 544 9990, our local rate enquiry line, to book a session.
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Things to consider •
What type of rental agreement is on offer - lease or license?
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How much is the rent and business rates for the property?
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When and how are these to be paid?
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What is the length of notice for the termination of lease?
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Look into types of insurance you will need, for example Buildings, Contents / Additional Equipment and Public Liability Insurance.
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Does the building meet fire and health & safety regulations?
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Does the building meet disability access requirements?
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What is the security situation for the building? You may also want to familiarise yourself with the area; is it safe at different times of the day?
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Are there maintenance services (internal and external) built into
the lease? •
Is there a connected phone line / internet access? Is this a condition you would like to negotiate with the landlord as part of the leasing agreement?
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Does the property have the right classification of use for your business?
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•
Are utilities (gas, electric, water, phone / communication lines) included?
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Are there up to date gas and electric safety test certificates?
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Can you access the building whenever you like or are there restrictions?
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What improvements / specific upgrades are you allowed to carry out in the property?
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What are the dilapidation responsibilities when you leave the property?
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Are there limitations regarding the number of users of the property (or on sub leasing)?
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Property terminology definitions A key to some common terminology related to property: Tenant or lessee person who is allowed to use a house, building, land for a period of time in return for payment to the owner
Landlord or lesser the owner of a property which is rented or leased to another individual or business Licensor the owner of the property Licensee the person who occupies the property Lease a legal document and rental agreement between a tenant (or lessee) and a landlord or (or lessor) 8/11
Leasehold interest the right to exclusive possession and use of an asset or property for a stated definite period, as created by a written lease Term of lease length of lease which can be fixed, periodic or indefinite Tenancy the relationship between the landlord and tenant Fixed-term tenancy tenancy which lasts for a fixed period of time Periodic tenancy tenancy which lasts sporadically (from week to week, month to month etc.) 9/11
Tenancy at will tenancy which the landlord can terminate at any time by giving notice and lasts as long as mutual parties wish it to Tenancy at sufferance or holdover tenancy period when a
tenant remains in possession of a property out with the period of the lease and in technical terms is trespassing. Rent the money exchanged for the lease of a property
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Next steps Property Planning Worksheet to help you clarify what stage you are at with your planning. Please see our FAQ Where can I search for premises for my business / practice? If you are resident in Scotland and require more in-depth support in this area, you can email us on enquiries@culturalenterpriseoffice.co.uk or call our local rate Enquiry Line on 0844 544 9990. In addition, you can be referred to our Property Adviser or Legal Adviser for a free advice session.
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Disclaimer: Cultural Enterprise Office is not responsible for any advice or information provided by any external organisation referenced in this document.