[ Pre-Lease Advice ]

Pre-Lease Checklist: What Commercial Tenants Should Check Before Signing

A commercial lease is a long-term financial commitment. The right pre-lease checks limit exposure to repair, reinstatement and compliance costs that often surface years after signing.

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Key points

  • Inspect the property before, not after, signing.
  • Identify repair and reinstatement obligations clearly.
  • Negotiate caps, schedules and landlord works where possible.
  • Commission a Schedule of Condition to fix the baseline.
  • Plan for service charges, statutory works and end of lease.

Building condition checks

A pre-lease building inspection identifies defects, wear and likely cost exposure across roof, structure, fabric, services, externals and means of escape. The findings inform negotiation of the lease itself.

Lease clause checks

Key clauses to review with your surveyor and solicitor include the repair covenant, reinstatement obligations, decoration cycles, yielding up, service charge, alterations and statutory compliance.

  • Full repairing and insuring (FRI) versus internal repairing only.
  • Reinstatement of existing alterations by previous tenants.
  • Service charge cap and exclusions.
  • Condition required at lease end.

Risk reduction tools

A Schedule of Condition, a cap on the repair clause, agreed landlord works and a documented list of permitted alterations are the practical tools for limiting exposure. Each can be negotiated before signing.

Frequently asked questions

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