Commercial leases relate to the renting of any non-residential property. The range of terms negotiated
between the landlord and tenant can vary greatly. Some of the terms depend on regulations; intended use of
the property; period of the lease; responsibilities during the lease period; restrictions of use;
insurances and a process for handling disputes.
Tuggeranong Legal understand commercial leasing and are experienced in understanding the finer details
which can often underpin a fair and reasonable contract. We review legal documentation from the landlord’s
solicitor to ensure you are protected and provide advice on important considerations for lease terms and
conditions.
Some considerations include:
- Understanding how lease duration can affect the goodwill of your investment
- Ensuring you are covered if the landlord wants to redevelop or carry out major works
- Choosing an appropriate lease term based on the maturity of your business
- Deciding whether your lease should be registered with the Titles Office
- Frequency and calculation of rent reviews
- Ensuring the responsibility of maintenance is clearly outlined in the lease
- Future proofing your agreement for any business changes that may occur during the lease period
including agreement on the cost of building improvements and fit-outs
- Considerations for a trading exclusivity clause if you share the property with competition
- Agreements for the right to terminate or receive a rent reduction based on influencing factors
- Ensuring any operating expenses which might affect overall costs are itemised in the contract
- Ensuring there is a clear structure in place for sub-leasing arrangements
- Understanding requirements for insurance and public liability
- Negotiating an appropriate security bond and termination clause
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