Why Legal Advice Matters for Short Term Commercial Leases  

When securing premises for your new business, flexibility is key. A short term lease can be a great way to secure space without long term commitments. But even a six or twelve-month lease can come with hidden risks if not properly reviewed. In this article, Consultant Solicitor Katie Burgess discusses short term commercial leases and why you should consult with a solicitor before taking one on.

Who should consider a short term lease? 

Businesses may want to consider a short term lease in various situations. They offer breathing room to test new concepts and adapt your business model while keeping overheads lower than a longer term lease. For example: 

• Seasonal businesses 
• Startups testing a new concept or location 
• Primarily online businesses trialling a physical location 
• Pop up shops 
• Businesses renovating or relocating their usual premises  

Whatever reason you are considering a short term lease, it’s important to make sure it will work for your operational needs. Working with a solicitor can help you identify whether a short term lease is the most suitable next step for your business.  

Common pitfalls found in short term leases 

Though these leases may be relatively short in duration, they can still carry long-term consequences for your business if they are not fully checked by a solicitor. Some common pitfalls include: 

• Service charges passed on by landlords for cleaning, maintenance, and utilities that are not clearly defined in the lease.
• Unexpected repair obligations, that you can be liable for during or at the end of your lease. 
• No properly drafted break clauses or notice periods, meaning you could be trapped in the lease for longer than anticipated. 
• Unanticipated restrictions, such as limits on trading hours, signage, or customer access. 

Why instruct a solicitor (even for a short lease)?  

There are many benefits to instructing a solicitor when taking on a short term lease. They will help you with various things and ensure the lease supports your business’s best interests, such as: 

Understanding your obligations: You can still be responsible for repairs, insurance, and reinstatement even in a short lease. Your solicitor’s job is to make sure your responsibilities are clear and you’re not taking on more than you realise.  

Exiting on your terms: Your solicitor will review break clauses and ensure you have clear options if your plans change.  

Keeping costs clear: Working with a solicitor will also help you avoid surprise service charges, rent increases, or legal pitfalls that could stretch your budget.  

Focus on your business: Let your solicitor handle the legal details of your lease, so you can stay focused on growing your venture.  

A short lease can be beneficial and suit the needs of a growing company. Getting legal advice now means you’re likely to have fewer problems down the line, without compromising on the flexibility of your business.

Get in touch with Katie Burgess for short term lease advice.