The dangers of DIY commercial leases

Landlords often come to us after signing business tenancy agreements without legal advice, only to find themselves in a difficult position when they later want their tenant to vacate.

This blog highlights the most common and costly risks landlords face when drafting their own commercial leases without legal guidance.

Service charges: How DIY drafting can leave you paying the price

Failing to properly address service charges can leave you covering costs you expected the tenant to pay, such as utilities for shared areas. These details are sometimes overlooked, but it’s essential to account for all expenses linked to leasing a property or part of one, and to clearly assign responsibility in the lease.

For example, a landlord may be liable for rates across an entire estate that are then recovered from leaseholders — but if this isn’t clearly set out in the lease, you could face unexpected costs.

Assignment clauses: The risk of losing direct contractual control

If you do not place restrictions on the assignment of a lease, you risk losing a direct contractual link with the current occupier. This can make it more challenging or impossible to enforce lease obligations, including payment terms and other covenants.

Security of tenure: Accidentally granting rights you didn’t intend

Where a business tenancy meets the criteria under section 23 of the Landlord and Tenant Act 1954, the tenant gains security of tenure. This means the lease does not automatically end when the term expires, and the tenant has a statutory right to renew.

If the lease is not properly excluded from the Act, there are only very limited grounds on which you can oppose a renewal application at the end of the term, and compensation may be payable to the tenant.

Why professional advice protects your position

A commercial lease is one of the most important documents a landlord will ever sign. Even small drafting errors can lead to significant financial exposure, disputes, or long‑term complications. Seeking legal advice from the outset is the most effective way to safeguard your interests and maintain a strong landlord–tenant relationship.

If you are preparing a new lease or concerned about one already in place, our commercial property experts are here to help. Get in touch with our team for clear, practical advice tailored to your property.