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Short term lease/Trial lease - Pros & Cons - experience please

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Hi,

I know I've been asking a lot of questions lately so I appreciate your patience and answers.

I've been approached by a party that is interested in one of our retail units for let, but he does not want to commit to a long lease, he wants to do a month trial to see if it is viable (it is not just a retail business, it would be working with a partner supplying stock so he doesn't want to commit until he knows it would work.).

Having only done std leases (1yr+) in the past, I am unsure how this would work. I will speak with a solicitor but hoped I could get some comments here first.

If it's a month lease:

Deposit - I would normally take 3 months but would you just ask for 1?

Rent - Is it usually higher than advertised rate due to uncertainty?

Duration - Do you contract out of LTA s24-s28 so it can be terminated at the end of a month with a months notice?

I said to them that they wouldn't have security on the property and if someone came along wanting a long lease...

Seems quite messy, my other thought was a 12 month lease with a break clause in there?

I appreciate anyone experience with this.

Q

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