You've signed the lease, installed the latest office equipment, and you pay rent on time.  You'd be forgiven for thinking that you won't hear from the landlord for a while.  But think again..

Landlords usually have a right to enter commercial premises on reasonable notice to inspect the condition of the property, and this could have a practical impact on your business.

If you’re a small company with limited staff, you personally might be required to show the landlord around, or allow workmen to conduct noisy tests and inspections.  It might not sound too onerous, but it might mean the staff kitchen is out of bounds for the day, the reception area resembles a construction site, or that urgent video link facility is disrupted when you need it most. 

Concerned that this might apply to you?  For a start, check the inspection clause of your lease.  Many leases will give the Landlord an entitlement to inspect and examine the state of repair of the premises, usually subject to some “reasonable” level of notice. 

But this is not a carte blanche, and landlords should be wary about going too far, as demonstrated in a recent Scottish case.  In Possfund Custodial Trustee Limited v Kwik Fit Properties Limited (2009), the landlord (Possfund) tried to conduct detailed contamination tests, which involved drilling bore holes over a period of four days, which it claimed to be consistent with the “inspection” rights reserved in the lease.  However, the tests became so noisy and tyre-some that Kwik-Fit sought a declaration that the landlord was being unreasonable, and was interfering with its “quiet enjoyment” of the property.  The court agreed, and said that for such a significant interference, the lease should have been worded much more clearly.  

It is therefore worth giving some thought to landlord’s inspection rights before you take on a lease obligation, since a well-drafted clause could help to minimise the impact on your business, and keep things running smoothly.