If you are renting a property for business purposes, you need to be eligible and adhere to certain checks including financial checks, identity and background checks, usage and suitability checks and health and safety compliance. You will also have certain legal responsibilities depending on your lease. In this guide, we’ll share information about the key checks needed to be eligible to rent an office space.
What Financial Checks do I Need to Pass to Rent an Office Space?
In order to rent an office space, you will need to pass certain financial checks to demonstrate to the landlord that you are financially stable and can meet rent payments.
These could include:
- Proof of income – In order to demonstrate regular income, you might need to provide bank statements, financial forecasts or profit and loss. New businesses with a short financial history may be asked for a business plan or evidence of funding.
- Credit checks – You may need to complete a credit check in order to prove that your business has a strong credit history and financial health. If you have any missed or late payments, it could impact your chances of renting an office.
- Deposit – Depending on the office space and the result of your financial checks, you may need to provide a deposit. For serviced offices, this tends to be around 1-3 months’ worth of rent; traditional office leases usually require a larger deposit.
What Documentation Do I Need to Show to Rent an Office Space in the UK?
Right to Rent
If you are a British or Irish citizen, you will need to demonstrate your right to rent in the UK by showing your landlord your passport. For non- British or -Irish citizens, you can get access to a share code to prove your right to rent.
Your landlord must then check your documents and carry out a right to rent check, make copies of the documents and return your documents to you after your check
Identity
You will need to verify the identity and legitimacy of your business by showing:
- Proof of identity (this will usually be the passport or driving licence of the business owner) and registration number for businesses that are already registered.
- Proof of address – you may need to provide the proof of address, such as a recent utility bill
- Company registration documents – for limited companies, landlords may ask for documentation that confirms that your business is registered with Companies House such as the certificate of incorporation and other official company documents.
Business Documents
You may also need to provide certain background documents for your business including:
- References – if you’ve rented office space before, you might be asked for a reference from previous landlords or office providers to ensure that you have a good track record of making payments and looking after property.
- Trading history – for businesses that have been operating for some time, you might need to provide evidence of a stable trading history including financial statements or client testimonials.
- Director checks – landlords may choose to conduct checks on the business directors looking for any red flags or issues with credit history.
What Usage and Suitability Checks Do I Need to Pass for an Office Space?
When renting an office space, the type of business you operate and the way in which you wish to use the space will be considered.
Intended use: Landlords will want to make sure that the office space is suitable for your business needs. The lease terms will need to reflect your business’ specific requirements.
Planning permission: Certain types of businesses may require specific planning permissions or zoning depending on their intended use.
What Health and Safety Checks Do I Need to Pass to Rent an Office Space?
To rent an office space, you will also need to adhere to certain health and safety requirements. While your landlord will be responsible for health and safety within the lease, such as for communal areas, you will need to ensure that you carry out a health and safety risk assessment in the workplace and remove any potential hazards.
If you are renting an office space, you will likely be responsible for the following in the workplace:
- The safe use of electrical equipment
- Fire safety
- Gas safety
- Asbestos management
- Temperature control
- Provision of toilets and washing facilities
- Drinking water
- Ventilation and lighting
Secure an Office Space with Pilcher
As a commercial estate agency with years of experience, we offer unparalleled knowledge of London’s commercial properties. We bring tenants, landlords, architects and designers together to help everyone find their perfect solution. For companies, we can find them a tailor-made solution to suit their business needs and find their ideal office space.