What Every Tenant Should Know About Commercial Property Compliance

Who Is Actually Responsible for Compliance?

Here's where many occupier businesses get caught out. If you lease a commercial property, a significant number of legal compliance obligations sit with you as the tenant, not your landlord.

Your landlord is typically responsible for the main building structure and any common parts in a shared building. But the space you occupy? That's largely on you.

Kirstie Cloke, who works in our property management team, sees this misunderstanding regularly:

"Most tenants are genuinely surprised when they find out how much of the compliance responsibility sits with them. It's not a criticism. These things aren't always spelled out clearly when you sign a lease, and people naturally assume the landlord is taking care of it. But for the space you occupy, that's rarely the case."

The Key Compliance Requirements for Commercial Tenants

So what should you be on top of? Here are the main obligations most commercial tenants need to manage:

EICR (Electrical Installation Condition Report)

An EICR assesses the condition of the electrical installations within your premises. This is required every five years and is your responsibility as the occupier.

Gas Safety Certificate

If your property has gas appliances or a gas supply, a Gas Safety Certificate must be obtained annually. Again, this falls to you as the tenant, not your landlord.

Fire Risk Assessment

A Fire Risk Assessment must be carried out and reviewed on an annual basis. This is a legal requirement under the Regulatory Reform (Fire Safety) Order 2005, and failing to have one in place is a serious matter.

Asbestos Management Survey

If your property was built before 2000, there is a reasonable chance it contains asbestos-containing materials. As the occupier, you are responsible for managing this, which includes having a survey reviewed annually.

Why Does Compliance Catch So Many Occupier Businesses Out?

It's partly down to the complexity of commercial leases. They're detailed documents, and the compliance obligations can be buried somewhere on page 37! It's also that, unlike residential tenancies, commercial property law places a much greater burden on the occupier. The assumption that landlords handle everything is a reasonable one in domestic life. In commercial property, it doesn't hold.

Simon Harper, our Head of Tenant Advisory, explains why this matters beyond just ticking boxes:

"Commercial property compliance is a serious matter. If something goes wrong, whether that's a fire, an electrical fault, or an asbestos issue, the question of who was responsible becomes a legal and financial one. Tenants who haven't fulfilled their obligations can find themselves exposed in ways they hadn't anticipated. Know what your lease requires of you, and get ahead of it."

The Lease Is the Starting Point

Every commercial lease is different. The specific obligations placed on you as a tenant depend on the wording of your particular agreement, the type of property, and whether you occupy it alone or share common areas with others.

This is why it's worth having your lease reviewed by someone who knows what to look for. Understanding your compliance obligations is part of understanding what you've signed up to.

How Jaggard Macland Can Help

Our tenant advisory and property management teams help clients understand exactly what their lease requires of them, from compliance obligations to rent reviews, lease renewals, and beyond.

If you haven't reviewed your compliance position recently, or if you've just signed a new lease and want to make sure you're covered, we're always happy to have that conversation. Get in touch for a free initial consultation.