This guide will clarify certain issues you will come across when you

are looking to find, rent or buy premises to house your creative

business. It will provide:

Lease checklist

Things to consider

Property terminology definitions

This non-legal guide relates to finding, renting and buying property in Scotland. Please be

aware that Scotland is a separate jurisdiction from England and Wales, and therefore has

a separate legal system. The information provided does not constitute specific legal

advice and may not be relied on as such.

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Firstly, check you have considered the following issues;

• Calculating your need and demand

• Negotiating small business relief

• Start-up costs

• Planning use codes

• Warrants

Introduction

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• Premises responsibilities

• Fire safety regulations

• Disability access

• Public access – security

• Maintenance responsibilities - general health and safety issues

• Rates

• Insurance

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It is useful to have a checklist when approaching renting or

purchasing a property for your business use. There may be other

issues not covered by the lease, so in all circumstances it is always

advisable to get the lease checked over by a legal professional if

possible.

In the first instance, if the leasing landlord you have approached has

a proposed lease agreement that you can review, you may benefit

from discussing this with our Legal Adviser.*

Lease checklist

4/11 *This is a free service available to individuals and businesses in the creative

industries, resident in Scotland. Please phone 0844 544 9990, our local rate

enquiry line, to book a session.

• What type of rental agreement is on offer - lease or license?

• How much is the rent and business rates for the property?

• When and how are these to be paid?

• What is the length of notice for the termination of lease?

• Look into types of insurance you will need, for example Buildings,

Contents / Additional Equipment and Public Liability Insurance.

• Does the building meet fire and health & safety regulations?

• Does the building meet disability access requirements?

Things to consider

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• What is the security situation for the building? You may also want

to familiarise yourself with the area; is it safe at different times of

the day?

• Are there maintenance services (internal and external) built into

the lease?

• Is there a connected phone line / internet access? Is this a

condition you would like to negotiate with the landlord as part of

the leasing agreement?

• Does the property have the right classification of use for your

business?

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• Are utilities (gas, electric, water, phone / communication lines)

included?

• Are there up to date gas and electric safety test certificates?

• Can you access the building whenever you like or are there

restrictions?

• What improvements / specific upgrades are you allowed to carry

out in the property?

• What are the dilapidation responsibilities when you leave the

property?

• Are there limitations regarding the number of users of the

property (or on sub leasing)?

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A key to some common terminology related to property:

Tenant or lessee person who is allowed to use a house, building,

land for a period of time in return for payment to the owner

Landlord or lesser the owner of a property which is rented or

leased to another individual or business

Licensor the owner of the property

Licensee the person who occupies the property

Lease a legal document and rental agreement between a tenant

(or lessee) and a landlord or (or lessor)

Property terminology definitions

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Leasehold interest the right to exclusive possession and use of an

asset or property for a stated definite period, as created by a written

lease

Term of lease length of lease which can be fixed, periodic or

indefinite

Tenancy the relationship between the landlord and tenant

Fixed-term tenancy tenancy which lasts for a fixed period of time

Periodic tenancy tenancy which lasts sporadically (from week to

week, month to month etc.)

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Tenancy at will tenancy which the landlord can terminate at any

time by giving notice and lasts as long as mutual parties wish it to

Tenancy at sufferance or holdover tenancy period when a

tenant remains in possession of a property out with the period of the

lease and in technical terms is trespassing.

Rent the money exchanged for the lease of a property

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Next steps

Please refer to our Property Planning Worksheet to help

you clarify what stage you are at with your planning.

If you are resident in Scotland and require more in-depth

support in this area, you can email us on

enquiries@culturalenterpriseoffice.co.uk or call our

local rate Enquiry Line on 0844 544 9990.

In addition, you can be referred to our Property Adviser or

Legal Adviser for a free advice session.

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Disclaimer: Cultural Enterprise Office is not responsible for any advice or information

provided by any external organisation referenced in this document.