If you are running a business, chances are you are doing so from leased commercial premises, or if you are in the process of establishing a business, then you may be seeking to lease commercial premises upon commencement of your business.
Commercial property generally includes offices, workshops, warehouses, industrial units, retail shops, storage premises and other non-residential property.
While Retail Shop Leases are covered by specific legislation (which include basic protections for tenants under these leases), the terms and conditions for a commercial lease will generally be negotiated and agreed upon between the landlord and the tenant.
Accordingly, you should attempt to obtain professional legal advice before signing a lease to ensure that you understand exactly what you are signing, and that the terms and conditions are what you have agreed to.
General terms and conditions which are usually covered in a lease include:
- the length of the lease and any options for renewal;
- the proposed rent, outgoings for the property and the mechanics for rent reviews (for example, by a fixed percentage, market review or CPI increases);
- details of the property being leased including any exclusive use car parks;
- who is responsible for the maintenance of the property including repairs and any required structural works;
- how and when the landlord can enter the premises;
- the ability for the tenant to alter or make changes to the premises to suit its business;
- grounds for termination of the lease agreement;
- how breaches of the lease agreement are dealt with/enforced including a dispute resolution mechanism;
- any conditions regarding sub-leasing of the premises; and
- details regarding security deposits and bank guarantees.
In addition to having an experienced commercial lawyer explain the ins and outs of a lease to you, they can also provide assistance in relation to negotiating additional terms or conditions in the lease, having regard to the state of the rental market and your bargaining power. Further, they can provide you with legal advice in relation to the requirements and benefits of registering the lease with the Department of Environment & Resource Management.
Feel free to contact one of our friendly Gold Coast Lawyers today on 5563 8970 to discuss your individual needs.
