Code features interactive Heads of Terms
Wednesday, 09 December 2015. The new Code, entitled ‘The Business Leasing Code for Landlords and Tenants’ is aimed at landlords and current and prospective occupiers and provides a clear and concise guide to all the issues involved in leasing a business premises including rent reviews, insurance obligations, repairs, sub-lettings and assignments, while also promoting fairness and transparency in the negotiation and construction of a commercial lease.
The Chairman of the SCSI’s Commercial Agency Professional Group, Brian Meldon said; “The SCSI has long recognised a need to increase awareness of property issues, especially among SME’s which are the lifeblood of the Irish economy and which employ almost 70% of private sector employees. It is important that these businesses have an authoritative source of information to guide them through the process of leasing a commercial premises so that they can manage their property efficiently and run their businesses more profitably.”
A Model Heads of Terms has also been provided, setting out a detailed list of the main points that should be included in a commercial lease.
“The Heads of Terms are in an interactive format enabling either party or both parties to enter terms of the agreement online. The Model Heads of Terms will then act as a checklist for negotiations before the grant of a lease and lease renewals. It is expected this will speed up the transaction process resulting in benefits to both owners and occupiers” Meldon said.
He pointed out that many of the topics included in the Code can be highly complex and a guide such as this can only provide an outline of the key points.
“After reading the Code landlords and tenants will have a better appreciation of when to seek professional advice from a Chartered Commercial Agency Surveyor and a fuller understanding of that advice”
The Society recommends that parties engaged in the leasing of commercial property should henceforth acknowledge compliance with the Code and its guiding principles. The adoption of the Code should be signalled from the outset, referenced in property marketing material, lease negotiations and in the subsequent Heads of Terms issued.
Mr Meldon concluded by saying “It is hoped that the code will demystify the letting process so that decisions in relation to leasing a commercial premises will become much clearer which in turn will ensure that entrepreneurs are focused on making a success of the business itself”.