We are continuing our 200-year anniversary celebrations with random acts of kindness in...
Today, land owners consider various ways to produce income from their land, instead of relying solely on farming. You must ensure you are protected correctly if allowing others to occupy your land, for example, leisure pursuits, offices, tea room or petting farm!
Always take independent legal advice, but invariably you should document any arrangement as a lease. A licence is likely to expose you to risks, and a tenancy-at-will won’t be acceptable to your tenant, or to you, if you’re looking for a decent period of rental income. I often see what can only be described as ‘messy arrangements’, causing owners difficulty. Correct documentation puts you in control.
- Should the tenant supply a guarantor and/or a rent deposit?
- How long should the lease be?
- What rent should be paid and when should it be reviewed?
- Should you or the tenant be able to end the lease early?
- Can the tenant pass the lease to someone else?
- Can they carry out alterations or change the use?
Renewable energy installations will need these considerations and specific additional ones.
Finally, you will want to insure the building, but recover the costs from the tenant. You may need a service charge to be included, and you will probably want to exclude the lease from the statutory protection given to tenants by the 1954 Landlord and Tenant Act.