ABSTRACT
The separation of ownership and occupation of commercial property offers benefi ts to both parties. The owner or landlord possesses an investment of a type which has a good record of providing an acceptable rate of return, prospects of income growth and capital appreciation. The tenant avoids a major capital outlay enabling available funds to be used in development of the business. The landlord accepts the need for professional management, involving costs, whilst the tenant accepts certain obligations, for example to repair and insure together with restrictions on the use of premises which belong to another party. The tenant runs the risk that the landlord will seek to recover possession at the end of the lease. However, unless the parties choose to opt out of the statutory safeguards the tenant has considerable security of tenure and some compensation at the end of the lease term should it be terminated at that time.
