The RICS has announced the launch of a freely available lease which will support small high street retail businesses.The new lease is a sector initiative from the RICS and the British Retail Consortium (BRC) and aims to simplify the leasing process for landlords and small business tenants. The lease will provide a simple, easy-to-use contract that will make clear to all parties the agreement they are entering into.
Making the wrong decisions when negotiating a lease can have catastrophic results for small business. As part of its response to the findings of the Land and Society Commission to deliver the government's plans for localism, the RICS worked to ensure these businesses have fairer terms in their lease.
Aimed specifically at small high street retail businesses, the lease will be a stand-alone short-term contract with no rent review or break clause. It will allow stability on property costs for small businesses and start ups. A key benefit for businesses will be flexible terms for occupiers contained within the lease. These terms will also speed up the contract negotiation process, which currently can take weeks.
Other benefits include the opportunity for small businesses to present a business case with clear and stable property costs when requesting financing.
Paul Bagust, RICS spokesman, said: “It's in everyone's interests for new businesses to be able to open on the high street with as little difficulty as possible. Clearly taking on property is one area which can be quite daunting for new, small businesses. This model lease should take a lot of worry out of the process for both landlords and tenants. This could make a real contribution to supporting new retailers wanting to open in towns and cities across the UK.”
Aimed specifically at small high street retail businesses, the lease will be a stand-alone short-term contract with no rent review or break clause. It will allow stability on property costs for small businesses and start ups. A key benefit for businesses will be flexible terms for occupiers contained within the lease. These terms will also speed up the contract negotiation process, which currently can take weeks.
Other benefits include the opportunity for small businesses to present a business case with clear and stable property costs when requesting financing.
Paul Bagust, RICS spokesman, said: “It's in everyone's interests for new businesses to be able to open on the high street with as little difficulty as possible. Clearly taking on property is one area which can be quite daunting for new, small businesses. This model lease should take a lot of worry out of the process for both landlords and tenants. This could make a real contribution to supporting new retailers wanting to open in towns and cities across the UK.”
