A solicitors firm has suggested that the number of positive relationships between tenants and landlords are at a record level.
Landlords and Their Tenants Happier than Ever
Butcher and Barlow suggest that the good practice guide for business leases that was introduced a few years ago has given more flexibility to the commercial letting industry. This in turn has cut the number of disputes between landlords and tenants.
Commercial Lease Code
The good practice guide is better known as the Commercial Lease Code. This was devised in order to give more clarity in agreeing the terms and conditions of a lease.
Property partner at Butcher and Barlow, John Hyatt, suggests that relations between tenants and landlords are extremely high following the introduction of the Commercial Lease Code. Hyatt said: “The Commercial Lease Code aims to put tenants on an equal footing with landlords when negotiating lease terms. The Code advises that landlords include a number of clauses in the contract covering everything from service charges to repairs and insurance.”
Hyatt believes: “Commercial leases are extremely complex, which is why they often lead to disputes.”
He said, therefore: “Anything that helps to make the process more transparent is good news.”
As a result, Hyatt says that the Code, which “recognises a need to increase awareness of property issues,” is very valuable.
Mr Hyatt also believes that the Code is having the desired effect, saying: “It seems to be working as we are seeing fewer legal disputes between tenants and landlords,” meaning the relationship is “more harmonious than ever.”
The Commercial Lease Code is a joint publication devised by 12 trade bodies. These include the British Property Foundation, the Royal Institute of Chartered Surveyors and the Confederation of British Industry.