Tenancy at Will for Part of Industrial Unit on an Estate
This Tenancy at Will for Part of Industrial Unit on an Estate should be used where a Landlord wishes to allow a Tenant to use part of a unit on an industrial estate on a temporary basis. This might be because the parties are in the process of negotiating a formal lease or because the Landlord has other long-term plans for the premises and is happy for a Tenant to occupy them in the short term.
It may be that the Landlord is itself a tenant of the Unit and is allowing the Tenant to occupy part of that Unit. This Tenancy at Will document caters for such a scenario. However, it does not provide for the Tenant to reimburse any service charge or insurance rent charged by a Superior Landlord. The Landlord should therefore ensure that the rental figure includes an amount to cover such expenses.
A Tenancy at Will does not have a fixed term. Instead, the arrangement continues until it is terminated by one of the parties. There is no notice period so termination happens with immediate effect. The Tenant has no security of tenure and can be required to leave the premises at any time.
Because a Tenancy at Will is a very short-term arrangement the document is very light on detail. If the arrangement is to last more than a few months a lease should be used instead.
Clause 1 contains the definitions. The definition of Premises makes optional reference to a plan. It is recommended that a plan is included, showing the Premises edged red, so that the extent of the Premises is clear.
A definition of “Permitted Hours” can be included. This will be relevant if the industrial estate has limited operating hours.
The “Rent” should include a charge for any services provided by the Landlord or any Superior Landlord. There is no separate service charge. Provision of services is covered in Clause 4.
Clause 2 is the grant of the Tenancy at Will.
Clause 3 contains the Tenant’s covenants. These cover payment of rent and other outgoings, use, alterations, alienation (no assignment is permitted) and the Landlord’s right of entry as well as licensing issues relating to the Tenant’s use of the Premises. The Tenant must comply with the tenant’s obligations in any Superior Lease (this will be relevant if the Landlord itself has a lease of the Unit).
Clause 4 contains a covenant by the Landlord to allow the Tenant to access the Premises via the Landlord’s adjoining land (if necessary). There are also covenants regarding the provision of facilities and services. In reality, services may be provided by a Superior Landlord rather than by the Landlord. As there is no service charge, the Rent should include a charge for any services provided by the Landlord or a Superior Landlord.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
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