The Fine Print: Your Legal Obligations With a Flexible Office Move

If you’re ready to sign a flexible office contract, or your current one is coming to an end, here’s a quick rundown of the legal aspects you need to consider. Plus, we look at some key considerations to be aware of if you’re exiting a traditional lease as part of the move.

Though flexible office space is notably hassle-free for businesses, there are a few things you need to be aware of at the beginning and end of your contract, especially if you’re moving from a traditional lease to a flexible office. Here’s the fine print on:

• Your obligations when signing a flexible office contract
• Your obligations when leaving a flexible office contract
• Your obligations when leaving a traditional lease

What are my obligations when signing a flexible office contract?

Be clear on what’s included in your contract

Contracts vary from one flexible office provider to another. Make sure you’ve read your agreement carefully and established what’s included. For example, while most contracts include business rates in the monthly rental fee, some don’t. 

It’s also worth checking if you have an allowance on utilities, whether Wi-Fi is included (and at what speed), what (if any) cleaning obligations you have, whether you have any choice around furniture, and what the rules are for additional services such as meeting rooms. Drop us a line if you’re unsure of what should be included in your contract, we’re always happy to help.

Know your occupation rights

Be aware that most agreements include a clause that says your provider can move you into a different office in the building if needed – for example, if they’re completing some work and need to access your office. While providers usually try and give you an upgraded office to compensate for any inconvenience, just bear in mind that being temporarily moved might be a possibility (though it’s an unlikely one).

It’s also worth checking your access rights to make sure you can get in when you need to – especially if you want access to your office outside of the traditional 9-5. 

Your obligations as a business

Remember that a flexible office contract is a two-way agreement. There will often be a list of activities for which you cannot use your office space, so check what’s permitted before you seal the deal.

Know your renewal rights

Check what your contract’s renewal clause says – it might automatically extend if no action is taken, potentially at a higher rent.

If you have an upcoming renewal, give us a call – it’s always good to check what else is available, and at what price, before you renew at a prescribed rate.

What are my obligations when leaving a flexible office contract?

Give notice

Check your contract to see if you’re required to give notice, as some contracts will stipulate a minimum notice period. Before you serve notice, give us a call so we can help you put a plan in place for your next move.

Repair any damage

Once you do leave your flexible office, make sure you return the office to the condition in which you found it, otherwise you might face losing some of your deposit (which is usually around two months’ rent). If the office needs a few minor repairs and you’re not willing to organise them, speak to your provider. They might be able to come to a fair agreement, arranging the repairs to be done on your behalf, and dipping into your deposit to cover the cost.

What are my obligations when leaving a traditional lease?

For starters, it’s always best to read your lease carefully and seek advice from our Tenant Rep team and legal advice where necessary. You can also give us a call so that we can help you put a plan in place.

Understand the Landlord and Tenant Act 1954

If your traditional lease is contracted outside of the Landlord and Tenant Act 1954, you don’t need to give notice that you’re leaving. Instead, you simply need to leave the space and remove all of your belongings by the lease’s expiry date. Dilapidations is another consideration – but more on that later. If you don’t leave by your contractual lease expiry date, you could be trespassing.

If your lease is contracted inside of the Landlord and Tenant Act 1954, it’s best to seek the advice of your solicitor alongside our Lease Advisory team. Once again, to leave before your contractual expiry date you do not need to serve a notice and simply need to vacate ahead of the expiry date. You are however required to serve a notice in the following circumstances:

1. You wish to request a new formal lease agreement – your solicitor will need to serve a Section 26 notice.
2. You have gone beyond your contractual expiry date and wish to leave – your solicitor will need to serve a Section 27 notice.

If neither the landlord nor the tenant serves a notice and the tenant remains in occupation beyond the contractual end date, then the tenancy will continue automatically on the same terms and conditions (including rent) until terminated in accordance with Section 27 of the Act.

For more information, speak to our Lease Advisory team.

Break clauses

If you’re exiting a traditional lease (or a licence agreement for that matter) by way of a break clause, you must give notice by the date outlined in your contract, and in the correct way. Plus, certain conditions will often need to be met for the break clause to be actionable, such as no outstanding rent being due and the removal of all belongings by the break clause date. In some cases, the conditions can be onerous; therefore, if you’re exiting a lease in this way, it’s always best to get our Tenant Rep team and your solicitor to check your lease and advise on the break conditions, as getting it wrong can be costly.

For more information, speak to our Tenant Rep team. 

Dilapidations 

Dilapidations is a term relating to property repairs and the re-instatement of alterations. There will usually be some dilapidations obligations outlined in your lease which you’ll have to comply with at the end of your term. It’s worth starting these conversations with your landlord well before the expiry date to get ahead of the game. Normally, you’ll have to cover the expense of returning the space back to its original condition. This can be a contentious area, so it’s worth employing a building surveyor to ensure you understand your obligations and don’t overpay. 

And of course, you can always call us to talk through your concerns or ask us any questions about your contract.

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