Property & Land
Tenants Obligations To Council Owned Shop And Factory Units
As a tenant of a Council owned shop or industrial unit you will have an agreement between the Council as Landlords (known as the lessor) and you as a tenant (known as the lessee).
This agreement known as the lease or tenancy will set out the responsibilities of both parties.
Leases and tenancies differ so you should check your agreement as to your responsibilities.
The lease sets out your obligations, which will normally include the following matters which are explained in more detail below:
- Term
- Rent & rates
- Other outgoings
- Repairs
- Alterations
- Statutory requirements
- Other obligations
- Assignment / sub-letting
- Insurance
- Use of the premises
- Termination
The length of your agreement ( known as the term ) will be stated
in your lease 
The rent is paid monthly by standing order
Rates to the premises are set by the Inland Revenue. These can
be found from the Inland Revenue – telephone ( 0191 ) 2207000
The tenant shall be responsible for the payment of :
- Insurance
- Fees
- Gas, electricity, water and telephone
- Security alarm and call outs ( if agreed )
- Refuse collection
- Tenants contents insurance
- Alterations to the unit ( if applicable )
- Statutory requirements ( annual servicing ofequipment and installations )
- Repairs / decoration etc,
- Dilapidations at end of term
Other costs involved with the premises
The tenant will have a responsibility regarding the repairs of the unit. These will be detailed in the lease.
Some larger industrial units will be on a full repair and insurance obligation, which requires the tenant to maintain and repair the roof, walls and floor together with the usual, repairing obligations.
The tenant will normally be responsible for the repair and maintenance of :
- Wall, ceiling and floor decoration
- Floor coverings
- Door repairs and decoration
- Windows including frames and glazing including decoration
- Sanitary appliances including WC and wash hand basins
- Electrical installation from beyond the electric meter
- Fire alarm and emergency lighting
- Gas installation including all heaters, pipe work and boilers
- Other Landlords Fixtures & Fittings
- Any physical damage
You shall be required to seek Landlords consent for any proposed alterations to your premises. You are not allowed to make alterations or improvements without prior written consent from the Council as Landlord
The Council cannot unreasonably withhold consent however you will be required to submit in writing your proposals which may include a plan showing the alterations.
You may then be required to obtain any statutory approval prior to the commencement of the works, which may include :
- Building Regulation Approval
- Planning permission
Other statutory approvalsYou may be asked that if you were to vacate the premises then the premises should be reinstated back to its original construction.
A fee may be required for the Council to assess your application
for alterations
The tenant is comply with all statutory requirements including :
- Gas appliances – To be tested and serviced every 12 months by a CORGI registered heating engineer.
- Electrical installation, fire alarm and emergency lighting – To be tested by a qualified electrician at regular intervals
- Fire risk assessments Commercial waste removal as required by the
- Environmental Protection Act
- Health and Safety at Work Act, etc.
- Other Statutory requirements
As a tenant you will also be responsible for the forecourt of your shop or factory unit. You will not be able to :
- Store skips outside the premises
- Allow rubbish or combustible material to be stored outside
- Place objects on the footpath or highway
- Ensure you waste is disposed of an appropriate manner.
Sub letting to factory units is not permitted
Shop premises sub-letting requires prior consent
The Council insures the premises on your behalf and recharges you accordingly
Some properties on a full repairing and insuring obligation are required to be insured by the tenant.
The risks that the Council insures against include fire, storm, explosion and some other perils.
You will still have to take out insurance for your business including your plant, equipment, etc. which will include theft, damage etc.
You will also have to take out insurance to include occupier's
liability.
Your agreement will state the use allowed by your premises. Each premises is allocated a 'use class order' under the Town & Country Planning Act, which identifies what can be carried out at the premises.
Any proposed changes of use should be clarified with Asset Management.
To terminate your agreement you will need to confirm in writing that you wish to vacate the premises. You will be required to give to give the minimum amount of notice as stated in your agreement.
You will be required to pay all rent and rates up to an agreed date together with incurred Council surveyors fees.
You will also be required to carry out certain repairs to your premises as required under a schedule of dilapidations as prepared by the Councils Building Surveyor.
