Commercial tenancy charges
Commercial tenancy charges
Author
Discussion

MartinQ

Original Poster:

797 posts

211 months

Tuesday 2nd August 2016
quotequote all
I rent a small office within a larger building and the letting agent has charged me a proportion of the repairs to a shop front about two doors away. This shop shares no communal area with my office so I'm a little aggrieved at having to pay it. The tenancy agreement mentions paying a proportion for the repairs and cleaning of the communal areas but it doesn't seem right contributing towards a repair that I didn't even know about or that we could even be liable for in the first place.

I've also been invoiced for a proportion of the landlord's building insurance. This also seems questionable to me as this is surely one of his business expenses and should be accounted for in the rent. Is this standard practice or should I question it with the agent?

Foliage

3,861 posts

152 months

Tuesday 2nd August 2016
quotequote all
Pop them in an envelope, mail them back to the agent, with a little note saying 'sent in error'. See where you go from there.

PurpleMoonlight

22,362 posts

187 months

Tuesday 2nd August 2016
quotequote all
You will need to post the wording of the specific covenants in the lease to get a decent answer. The repair could refer to the whole building not just the communal areas.

It is usual to pay landlords insurance on top but again there should be something in the lease stipulating your liability.


anonymous-user

84 months

Tuesday 2nd August 2016
quotequote all
MartinQ said:
The tenancy agreement mentions paying a proportion for the repairs and cleaning of the communal areas
That seems to answer your question.

The lease will also cover the insurance situation.

JQ

6,863 posts

209 months

Tuesday 2nd August 2016
quotequote all
You pay whatever is stated in the lease. In general terms you pay a proportion of the total cost of maintaining the building, whether your demise is connected to those elements being maintained or not. Some service charges will have different schedules, so that the guy on the ground floor does not pay to service the lift, but not all do. I would expect shop fronts to be part of a separate schedule, but if you didn't agree that when negotiating your lease then you might be stuffed.

As for insurance, yes it's standard practice that the Landlord recovers the cost of insurance. Some leases will include the insurance cost but the vast majority won't. Again it's whatever is in your lease.

surveyor

18,705 posts

214 months

Tuesday 2nd August 2016
quotequote all
Devils in the detail. Happy to have a look at the lease if it helps.

Buildings insurance is often (normally) recharged.

Rob_H

108 posts

273 months

Tuesday 2nd August 2016
quotequote all
As others have said the maintenance will be covered under the service charge schedule under the lease. Likewise if your shop front needs repair the others will also cop for a proportion so its swings and roundabouts. Again a similar situation for roof repairs and the like. Assuming your on an IRI lease based on what you've said so again whole building insurance would be proportioned accordingly usually.

Rob