When it comes to renting a shop or restaurant space in London, competition can be fierce. Landlords and agents will receive several enquiries on the best spaces, so standing out from the crowd can make all the difference. Startups have the best chance when they can demonstrate that their concept is viable, their finances are in order, and their brand will thrive in the local area.
We have created a startup checklist to help small business owners prepare before they approach landlords or agents. Below, we break down each point on that checklist in more detail, explaining why it matters, how to approach it, and where to start.
Decide Your Trading Name
Your trading name is more than just what goes above your shop door. It represents your identity and is often the first thing agents and landlords notice. Choose a name that is memorable, easy to pronounce, and aligned with your brand’s personality. Before finalising it, check that the name is not already registered with Companies House or trademarked by another business.
If you plan to expand in the future, consider how the name might work in other locations or across different product lines.
Create a Limited Company
While you can rent a commercial property as a sole trader, landlords usually prefer to deal with limited companies. More importantly, in the event of business failure, the liability for paying rent and rates for the duration of the lease term remains with the limited company, rather than in your personal name.
Having a limited company also shows professionalism and can make it easier to open a business bank account, apply for loans, and build credibility with suppliers.
Prove Your Concept Through Pop Ups, Market Stalls or Events
Landlords want evidence that your concept works in practice. One of the best ways to prove this is by running short-term pop ups, market stalls, or event collaborations before committing to a full lease.
This allows you to test your idea, gain customer feedback, and demonstrate traction with real numbers. A proven concept gives agents and landlords confidence that your business is likely to succeed and pay rent consistently.
Have Your Business Plan and Financial Projections Ready
A clear business plan is essential when approaching landlords. It should outline your brand story, target audience, pricing strategy, and growth plans. Include basic financial projections that show your expected revenue, costs, and profit margins for at least the first 12 months.
Even if landlords do not request the full document, it demonstrates that you have done your research and understand what it takes to run a sustainable business.
Make a Website Landing Page and Instagram Account
In today’s retail world, agents sometimes check your online presence before deciding whether to engage. A simple website or landing page that outlines your brand, images of your products or services, and your contact details can go a long way.
Instagram is equally powerful. A curated feed of your concept, product photography, and customer engagement shows that your brand is active and has an audience. You do not need a huge following, as authenticity and consistent content matter more.
Understand Your Budget for Rent, Rates, Fit Out and Deposit
Before enquiring about properties, you need to have a clear idea of what you can afford. Remember that your costs will include more than just rent. Business rates, rent deposit, service charge, insurance, and fit out costs all add up quickly.
If you are unsure how to estimate your fit out costs, take a look at our guide How to Fit Out a Retail Unit on a Budget. It explores creative and cost-effective ways to design your space, from sourcing second-hand furniture to negotiating with outgoing tenants, helping you make the most of your budget without sacrificing style.
Assess What Size Property and Specification You Need
When searching for space, be realistic about what size and layout you need. 250 sq ft is the equivalent of a standard sized car parking space. So multiply that up to what size you need and have a figure in mind when an agent asks. Think about your operations. Work out how much back-of-house storage you need and then factor that in. Similarly, you may have some site specific requirements, like extraction or 3 phase power supply, to run a commercial kitchen, for example.
By knowing these details in advance, you can quickly identify which properties are suitable and avoid wasting time viewing spaces that do not fit your requirements.
Familiarise Yourself with the Commercial Leasing Process
The commercial leasing process is very different from residential renting. Leases are often longer, legal obligations more complex, and negotiations more detailed. Understanding key terms such as rent review, service charge, repairing obligations, and break clauses will help you speak confidently with agents.
We explain this process in detail in our article The Six Stages of Renting a Shop or Restaurant in London, which is an essential read before you begin your property search.
Provide Proof of Funds or Identify Your Finance Options
Landlords will want to see that you can afford the rent and any upfront costs. This might include a recent bank statement, confirmation of funding, or a letter from an accountant.
If you are still securing finance, consider options such as the Government Start Up Loan, or explore asset finance and crowdfunding as discussed in our blog How to Finance Your Fit-Out.
Create a Landlord Pack
A landlord pack is your opportunity to present your brand in a professional and compelling way. It should include:
- A short summary of your business concept
- Key financial information
- Images of your products, design mood boards, or previous pop ups
- Links to your website or social media
This can be a simple PDF that agents can forward to landlords. A strong landlord pack shows that you are serious about your business and helps your application stand out from others.
For help creating your landlord pack, check out our guide here or see our blog ‘What is a Landlord Pack’.
Appoint a Solicitor
Before you sign a lease, it is important to have a solicitor who specialises in commercial property review the terms. A good solicitor will ensure the lease is fair, check for any hidden costs, and explain your legal obligations.
Having legal representation from the start also reassures landlords that you are ready to go and that the process will move smoothly once terms are agreed.
If you need help finding a solicitor, we have identified 6 professional, competitively priced solicitors happy to work with startups. Head over to our solicitor guide here.
Final Thoughts
Presenting yourself as a prepared and professional tenant makes a significant difference when renting retail space in London. By completing everything on our tenant checklist, you will not only strengthen your position with landlords but also increase engagement from agents who are more likely to put your name forward for the right opportunities.
You can download and complete the full checklist here to get started.
