Whether you are a Landlord granting or considering granting a Lease, or a Tenant or Sub-Tenant entering into or considering entering into a Lease, it is important that you understand and obtain advice as to the rights and obligations imposed under your Lease and by legislation.
If You Are a Tenant
For most businesses, rent will be one of their more significant expenses, accordingly it is important to ensure that your Lease suits your needs and that you understand exactly what it is you are signing up for. In most cases the Lease is drafted by the Landlord and therefore it is usually on terms beneficial to the Landlord, rather than the Tenant.
It is crucial that you obtain advice and negotiate the terms of your Lease before you sign any Lease, Agreement for Lease or any other binding document, or enter into possession of the leased premises, as it is often too late to negotiate after the event.
Before entering a Lease you should consider things such as:
- Payments required under the Lease (e.g. rent, outgoings, levies, sinking fund contributions etc);
- Rent reviews;
- Term of the Lease and options to renew;
- Fit out requirements;
- Guarantor’s liability;
- Permitted use of premises and whether the premises are suitable and zoned for your proposed use;
- Relocation and demolition of the Leased premises by the Landlord;
- The applicability of retail leasing legislation.
If You Are a Landlord
As a Landlord you need to ensure that your Lease is drafted to protect you and your investment. It is important that you understand and address potential risks and liabilities that are associated with leasing out your premises.
It is also important that you understand and comply with your obligations under the Lease and those prescribed by legislation.
Before granting a Lease you should consider such things as:
- The financial viability of the Tenant and whether a guarantee is required;
- Insurance requirements;
- The applicability of retail leasing legislation;
- When and how rent will be reviewed;
- The term of the lease and options to renew;
- Whether or not a bond will be required;
- Who will bear the risk and liability associated with the premises;
- Will you need to relocate the tenancy or demolish the premises during the term of the Lease.
How We Can Help
With our streamlined procedures, knowledge and expertise we can help by:
- Explaining your rights and obligations under the Lease and legislation;
- Identifying and managing legal pitfalls and issues;
- Drafting and tailoring or negotiating a Lease that suits you.
We can also assist with other leasing issues such as:
- Lease disputes and terminating leases;
- Assignment of leases;
- Sub-leases and licensing arrangements.
For further information please contact: