Provision in contract for serviced office

caldi9

Hi,

I am about to rent a serviced office and the contract specifically states a provision that “The Landlord and Tenant agree that the Landlord and Tenant Act 1954 sections 24 to 28 do

not apply.” 

Is that common or a red flag?

Thanks

eddddy

It's about security of tenure. Those sections of the LTA would give you an automatic right to renew your lease/contract when it expires.

So, by excluding those sections, the provider of the serviced office isn't obliged to renew the current lease/contract when it finishes. They can "throw you out" at the end of the contract, if they choose.

martindow

I can't answer your question, but as this seems to be a commercial contract, consumer protection laws against unfair terms do not apply.  It is essential that you get a solicitor to read the contract and it is normal for negotiations to take place over the terms.  Conditions can be very onerous in commercial tenancies, with the tenant being made responsible for repairs and maintenance to the structure of the building for instance.

Your contract could be more benign, but you need to be crystal clear on what it entails before you sign it.

boots_babe

I'm head of property for a large retailer, it's perfectly common and not a red flag. 

Edddy is correct in his description,  it all depends whether you are interested in having this security of tenure or not. Nowadays a lot of the leases I take on, we choose to contract out of the 1954 Act, simply because I know it will get me a lower rent But of course I'll also be considering the likelihood that the landlord will want us to stay after the initial term, or whether I think they'll be likely to find it easy to line up a new tenant.

The standard contract is just a starting point. You should go through it and request any amendments you are not happy with, this all forms part of the negotiation. So if security of tenure is important to you,  there's nothing to stop you asking to contract in to the 1954 Act, just be aware that if the landlord agrees, they may seek a higher level of rent in return.

Good luck.