06/12/2024
Insights
Eddisons’ team of commercial property management professionals offer a comprehensive service which it provides to landlords & building owners. But Aman Verma, Associate Director, on the commercial agency side of Eddisons believes it’s important for new occupiers to know what their responsibilities are when it comes to their premises.
In a sad reflection of the times we are living in presently, I’ve been made aware by agency colleagues in different parts of the country of a few break-ins leading to thefts of fixtures & fittings or even occupier’s equipment and stock in the period after a transaction has been completed, but before the new occupier is fully in-situ and operational from their new premises.
As the agent, we are often the first port of call for the new occupiers in these scenarios because we have been the face of the deal in representing the landlord or, in the case of a property sale, the vendor.
It’s understandable that many occupiers in such cases look to the agent in the first instance - particularly if it’s the first commercial premises they have had - but it’s really important for occupiers to acknowledge where the landlord’s - or the previous owner’s - responsibilities begin and end in matters of security & insurance.
Get the right advice
If your commercial lease is coming to an end and you’re unsure of the legal and financial obligations it may bring, please get in touch with our team. At Eddisons, we understand every aspect of commercial lease agreements and can provide confidential guidance to help you end your lease in the right way.
Security for freehold and leasehold properties
Where a property is sold, it’s a lot clearer due to the legal pack that is produced by the seller’s solicitor and reviewed by the purchaser’s solicitor. Insurance will be in place until the day of the completion for the seller and a new policy should be put in place for the purchaser.
Security and insurance responsibilities are as clear cut for commercial property owners as they are for residential householders in this instance.
In the matter of tenancy - and when it comes to premises on a wider commercial estate, complex or scheme solely owned by a single landlord - almost all landlords, in our experience, will have security measures in place to protect their interests in the whole estate. Generally, this will be CCTV or a security firm presence or both - the costs of which are charged back to occupiers via an estate or service charge which may also cover wider aspects like site maintenance and landscaping.
Regarding the individual business premises occupied by tenants, but owned by private landlords, it is the tenant’s responsibility to ensure that their premises are secure from the point of completion of the letting unless there are specific provisos agreed.
Leases on full repairing & insurance terms, see tenants with responsibilities for contents insurance and the landlord with those for building insurance. In the event of break-in or vandalism, this sees tenants in a position to claim for their losses but they will not be liable for any damages to the building providing they judged to have met their obligations to the satisfaction of the landlord’s insurers.
These are the most clear-cut scenarios in which security and insurance obligations of parties are obvious.
Securing buildings with multiple occupiers
In cases where buildings are the workplace to multiple occupiers who are separate businesses such as an office block or similar - where there are common parts and could be shared facilities such as reception, meeting room or catering services - a management company is very likely to exist. Responsibilities and obligations of each occupier and any service provider will clearly be stated in the lease or contract of sale, as appropriate.
As agents, we always welcome questions from potential occupiers and tenants about all aspects of the property and that includes security and insurance obligations.
Similarly, our property management colleagues welcome enquiries from any landlords or property owners about their range of services which do include vacant properties in the interim period between occupiers.
Get in touch with the Eddisons team
Please contact us for more details and information
