At Olawill, we provide crucial property advice to empower tenants and safeguard their commercial leases. Today, we would like to discuss the importance of documentation. There are times when tenants can make the mistake of not filing things. It could range from something as simple as not keeping a copy of their lease, to fundamental things such as failing to document alterations at the start of their tenancy.
Sometimes it is not the fault of the tenant, such as in a case where the tenant was offered a reduction during the pandemic. The landlord agreed to collect less rent due to issues with the tenant’s trading due to closures. This arrangement continued past the COVID period until a rent review date was due. So quickly, what was a nice act quickly becomes a burden on the tenant, as when the landlord’s agent sought proof of this agreement for the rental reduction.
Unable to provide proof due to the lack of documented evidence, the tenant was asked to pay the arrears back. Although the tenant can claim a verbal agreement was formed, it would have to be proven in court which can lead to more costs and uncertainty. Sometimes even rent-free periods might be promised by landlords but not included in the lease.
These situations can sometimes work themselves out in the case of a landlord that chooses to honour the agreements but this can be uncertain. My tips on how to protect yourself are:
➡️Ensure you request formal documentation of any lease changes by a deed of variation/covenant.
➡️Ensure any exchange prior to the deed is included in an email, not by phone.
➡️Cultivate a habit of constant communication with your landlord or their agents.
Documenting these changes by emails is a backup plan that can be enforceable as we have seen in some recent case law. I would suggest that tenants be careful of statements such as “subject to contract and without prejudice” or disclaimers in signatures or the body of the email, which can potentially make any agreements invalid.
Olawill provides property advice from lease start to lease end to tenants that might struggle when it comes to their commercial property strategy. Contact us today for a free lease consultation.
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