PROMOTION Pop goes the High Street op up shops may not be new, but they remain a feature on the high street. They are popular with landlords seeking to avoid paying business rates and other outgoings on retail space that would otherwise remain empty and with tenants looking for a short-term commitment. In St Albans, they are mainly associated with seasonal retailers seeking to get the most out of Christmas trade. However, established brands are also beginning to take advantage of the opportunities offered by the pop up model to trial a new concept or location, while online retailers are using the model to engage with customers face to face without the costs associated with a permanent bricks and mortar store. However, landlords and tenants should avoid rushing into any property arrangement without first giving some thought to the potential legal implications. Any arrangement should be documented by way of a licence to occupy or short-term letting agreement to make sure that both parties are clear about their rights and obligations during and at the end of the period. Landlords considering letting space to a pop up tenant should make sure that they have the requisite planning consents in place and that any agreement does not allow the tenant to acquire security of tenure under the Landlord and Tenant Act 1954. It would also be appropriate to limit the tenant's rights to assign or underlet the premises or carry out alterations beyond an initial fit out. Tenants should try to limit their repairing obligations under the agreement to avoid taking on liability for dilapidations that could wipe out their profit. Tenants will also want to limit their financial exposure as much as possible by negotiating a rental figure that is inclusive of service charge, insurance and rates. Both parties will want to consider what termination rights they require. Landlords may want the ability to terminate the agreement early if they find a long-term tenant and tenants may want the flexibility to terminate if the venture is not profitable. Eleanor Willatts Senior Commercial Property Solicitor 01727 738254 ewedebenhamsottaway.co.uk debenhamsottaway.co.uk DEBENHAMS OITAWAY SOLICITORS Your aspirations are our inspiration PROMOTION Pop goes the High Street op up shops may not be new, but they remain a feature on the high street. They are popular with landlords seeking to avoid paying business rates and other outgoings on retail space that would otherwise remain empty and with tenants looking for a short-term commitment. In St Albans, they are mainly associated with seasonal retailers seeking to get the most out of Christmas trade. However, established brands are also beginning to take advantage of the opportunities offered by the pop up model to trial a new concept or location, while online retailers are using the model to engage with customers face to face without the costs associated with a permanent bricks and mortar store. However, landlords and tenants should avoid rushing into any property arrangement without first giving some thought to the potential legal implications. Any arrangement should be documented by way of a licence to occupy or short-term letting agreement to make sure that both parties are clear about their rights and obligations during and at the end of the period. Landlords considering letting space to a pop up tenant should make sure that they have the requisite planning consents in place and that any agreement does not allow the tenant to acquire security of tenure under the Landlord and Tenant Act 1954. It would also be appropriate to limit the tenant's rights to assign or underlet the premises or carry out alterations beyond an initial fit out. Tenants should try to limit their repairing obligations under the agreement to avoid taking on liability for dilapidations that could wipe out their profit. Tenants will also want to limit their financial exposure as much as possible by negotiating a rental figure that is inclusive of service charge, insurance and rates. Both parties will want to consider what termination rights they require. Landlords may want the ability to terminate the agreement early if they find a long-term tenant and tenants may want the flexibility to terminate if the venture is not profitable. Eleanor Willatts Senior Commercial Property Solicitor 01727 738254 ewedebenhamsottaway.co.uk debenhamsottaway.co.uk DEBENHAMS OITAWAY SOLICITORS Your aspirations are our inspiration