However, there is a lack of certainty in respect of monthly rolling tenancy agreements in that the tenant could leave upon giving the requisite notice therefore leaving the Landlord to solely incur the expenses associated with owning a commercial property. It may also mean that there are periods where the property may be vacant which could lead to issues related to trespass and squatters.
A monthly rolling tenancy agreement does not protect the Landlord to the extent that a fully drafted lease does and therefore the Landlord should carefully consider whether this route is wise.
A major factor to consider when granting a monthly rolling tenancy agreement is that it is not possible to contract it out of the security of tenure provisions that are given by statute to tenants occupying commercial premises for business purposes. The tenant therefore acquires rights which may not be foreseeable to Landlords who have not considered the impact of monthly rolling contracts carefully.
A Landlord must also seek advice on how to end monthly rolling contracts and this can all depend on how often the rent is paid for example weekly or monthly. This impacts on the way in which a notice is served and whether it is served correctly in order to end the tenancy.
A good way to allow both parties to end a lease is to have a monthly rolling break option included in a fully drafted lease rather than utilising a monthly rolling tenancy agreement. The term of the lease could be longer for example 1, 2, or 3 years but with a monthly rolling break clause which could be drafted so that both the Landlord and tenant could exercise. It would be a monthly rolling break if the terms of the break are that one party must give at least 30 days written notice to the other after which the lease would determine. In this way, the Landlord has the benefit of a lease that is contacted out of the 1954 Act but also allows him to end the lease at short notice.
To consult with Simrit, please submit an enquiry for a free 15-minute consultation or call our friendly team today on 020 7148 1066.
Read more of our latest blog posts, featuring all the latest legal news, analysis and opinion from our expert lawyers.
- By Lawbite Team
- November 09, 2020
When an SME takes out a commercial property lease that it will want to carry out works on the premises, likely both at the outset and at other time...
- By Lawbite Team
- May 21, 2020
Many commercial landlords and tenants are struggling during the COVID-19 outbreak. There are pressures from both sides, forcing the compliance of l...
- By Lawbite Team
- May 05, 2020
At LawBite we are seeing an increasing number of queries and concerns following the spread of COVID-19 and how it impacts the rental sector. We hav...
LawBite can help you
LawBite is on a mission to provide business legal advice that is easier to access, clearer to understand and much cheaper. Our on-line legal advice platform can quickly connect you with expert business legal advice. Our friendly, highly qualified business lawyers, solicitors and mediators will give you the guidance and reassurance that comes from customised legal advice for small and medium sized business.
Whether you are bringing or defending a legal claim, outsourcing work, want a business contract review to ward off disagreements, talk to an expert trademark lawyer, resolve a contractual dispute with methods like mediation and arbitration, or getting your new company set up and on the right footing with a robust shareholder agreement and GDPR standards, we can help you succeed.